Amazon Pulling Back on Physical Style Stores
Less than two years following its opening, Amazon Style is shuttering its doors. The two physical apparel retail locations from Amazon will close by November 9.
Kristen Kish, an Amazon spokesperson, said the company decided to close the Amazon Style stores after “careful consideration” to focus on its online fashion shopping experience.
According to Amazon sources, the company is continuing to grow its online lineup of apparel offerings from companies like Coach, D’Amelio Footwear, and Victoria’s Secret.
It is also looking to invest in creating more informative shopping experiences, launching services like Virtual Try-On, AI-powered fit recommendations to improve sizing accuracy, seven-day-long “try before you buy” services, and more.
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As for staff, Amazon said it is working closely with affected employees to identify new opportunities within the company at nearby sites or within corporate roles.
Recent staff lay-offs gave an early glimpse of a brick-and-mortar pull back, with most role eliminations occurring in the company’s Amazon Stores and People Experience and Technology Solutions (PXT Solutions) organizations. Amazon Stores refers to the company's retail business, inclusive of its e-commerce business.
However, Amazon says that it continues to build out its physical presence, with physical store sales growing 6% YoY in Q3 2023. Grocery, specifically, is where Amazon is investing heavily, stating it needs to find the right mix of offerings for its customers.
“Physical retail remains an important part of our business, and we’re continuing to invest in growing our grocery stores business, which spans Amazon Fresh, Whole Foods Market, Amazon Go, and third-party partnerships,” Kish added.
Recent news from its grocery segment includes progress on the sustainability front. As part of the company’s Climate Pledge commitment to be net-zero carbon by 2040, one of the company’s Amazon Fresh locations in Seattle received a Zero Carbon Certification from the International Living Future Institute (ILFI).
The 35,000-square-foot store was designed with sustainability in mind, having saved 100 tons of CO2e since opening last year. Features include a natural-refrigerant-based cooling system, an all-electric kitchen and hot water heating systems, EV charging for customers, and low-carbon concrete floors.
