Amazon has decided to close its physical clothing stores after approximately a year and a half since opening its first store, shifting its focus towards grocery stores, this move represents the latest transformation in the company’s physical retail sales strategy.
Amazon informed its employees of the decision to close Amazon Style stores by November 9, according to Kristen Keesh, an Amazon spokesperson, this decision comes after careful consideration and aims to concentrate on the online fashion shopping experience, offering customers a range of new and high-value options while harnessing innovative technology to meet their needs.
Last year, Amazon closed most of its branded physical stores, reduced warehouse space, abandoned unproven ventures, and laid off around 27,000 employees to cut costs and enhance efficiency.
In May 2022, Amazon decided to reopen physical clothing stores and hired new employees, despite shedding many other retail activities at that time.
Keesh pointed out that the company is working with employees affected by the store closures, offering them opportunities for internal job transfers and providing severance packages for those who choose not to remain.
This decision is part of the efforts by Tony Hogett, the newly appointed head of Amazon’s retail sales division, to redesign grocery stores for simplicity and customer convenience.
Amazon plans to continue investing in expanding its grocery store businesses, including Amazon Fresh, Amazon Go, and Holl Food Market.
Despite closing the clothing stores, physical retail stores remain significant for the company, and they intend to open more new grocery stores.
