Initially, Amazon competed with shopping centers. It’s now moving into one of them.
The e-commerce behemoth said on Thursday that it will build a clothes shop in a Southern California mall later this year. It’s Amazon’s latest move into the physical world; the company currently sells more than 10% of all clothing in the United States.
The shop will open at Americana at Brand in Glendale, selling women’s and men’s clothes, as well as shoes and other accessories. According to analysts, Amazon’s foray into malls might pose a new challenge to established clothes retailers due to the data and customer insights it will gather.
As customers scan products they see, Amazon’s algorithms will spew forth real-time suggestions, according to the company. Shoppers may also take an online poll about their style and fit preferences.
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The shop will be roughly 30,000 square feet, comparable to Kohl’s but about one-third the size of major department stores such as Macy’s. However, it will have more than twice as many styles as regular shops since just one of each item of clothing will be on show, with the remainder stored in the back room. Amazon curators choose items based on input from millions of people who buy on Amazon.com.
The managing director of Amazon Style, Simoina Vasen, refused to comment on the new retail concept’s rollout plans or sales estimates. The Glendale shop will open on an unspecified date, according to Amazon.
During the epidemic last year, Amazon overtook Walmart as the leading clothes retailer as more people started purchasing online.
In March, Wells Fargo predicted that Amazon’s clothes and footwear sales in the United States will climb by nearly 15% in 2020, reaching more than $41 billion. That’s around 20% to 25% more than Walmart and an 11% to 12% proportion of all clothes sold in the United States.
Amazon has made a huge push into fashion in recent years with its own brands, and in September 2020, it opened Luxury Stores, an online retailer.
On September 27, 2018, Daniel Thorpe of Hoboken, New Jersey, uses the Amazon app to pay for his purchase at the Amazon 4-star shop in New York’s Soho area. Amazon said Thursday, Jan. 20, 2021, that it will launch its first-ever physical clothes store later this year at the Americana at Brand mall in Glendale, Calif., that would provide tailored suggestions when consumers browse and scan products on their phones, as well as high-tech changing rooms. (AP Photo/File: Mary Altaffer)
Customers may explore goods on display and scan a QR code to view sizes, colors, and user ratings at the Amazon Style shop. Customers have the option of sending products to fitting rooms or to the store’s counter. Customers may use a touchscreen to order extra things after they’ve entered a fitting room.
In an Amazon blog post, Vasen stated, “Amazon Style entirely reimagines what’s possible in the fitting room, turning it into a customized area where consumers may continue to peruse a seemingly limitless inventory of outstanding designs.”
The prototype store, according to Neil Saunders, managing director of GlobalData Retail, might increase Amazon’s impact in the industry, particularly among clothes consumers who like the experience of discovering and browsing real locations. It may also provide Amazon with additional shopping data.
However, he stressed that Amazon’s success is contingent on execution.
“Historically, it hasn’t been very adept at generating a wonderful in-store experience,” Saunders said. “It tends to be extremely strong in terms of technology and operations, but it may be lacking in terms of spirit and soul — both of which are very crucial in the fashion industry, where customers need inspiration, curation, and personal services.”