Amazon is rethinking its strategy when it comes to their physical stores. The global empire announced today that it would be closing all of their “pop-up” stores around the United States. The company will be closing all 87 stores across the country, reportedly by the end of April this year.
Amazon’s pop-up stores were a part of their retail strategy, helping them take over the world, since 2014. The company opened small kiosks in different malls across the country to let shoppers test out and buy products such as smart speakers and tablets. The pop-up stores showed the difference between online shopping and in-store shopping, as they gave Amazon a physical presence within malls that was different from the usual online store.
This news may be a disappointment to some malls across America. Amazon is a phenomenon across the world, making billions of dollars in revenue a year. People across the globe are fascinated by Amazon product, whether they may own them or are solely curious about them. Having these pop-up shops allowed struggling malls to draw in customers. Many malls relied on the tech giant to help their establishments thrive. The company announced that they will be laying off the employees, but will give them a severance pay if they agree to stay with them until the stores close in April.
Amazon is shifting their focus on their physical stores to different ideas in the next coming years. The company is working towards expanding Amazon Books as well as their Amazon 4-Star stores. Amazon 4-Star stores also sell various products such as electronics, kitchen products, and books. The news of the pop-up shops also comes just days after Amazon announced the opening of their cashier-less grocery store, “Amazon Go.” These new grocery stores will allow shoppers to grab and pay for items through their smartphones instead of using checkout lines. It was reported that the company may be aiming to have 3,000 stores open by the year 2021.