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Amazon threatening clothing chains with its own stores

Amazon Branded TVs

The Amazon retail group is now taking on clothing brands at the high streets. The company plans to open its first clothing store and threaten the major chains that have a presence in malls on their own property. Like the news agency Associated Press reports, Amazon’s first specialty store is slated to open later this year at a mall in Glendale, Southern California. The store that Amazon is renting there has a sales area of ​​about 2,800 square meters. With a special system, however, they want to offer twice as much as is known at other stores of this size.

Because Amazon will use its highly developed logistics systems here to ensure that each product is only available once in the display areas. The excess stock, including various sizes, is stored compactly in the warehouse and can be picked up at any time if necessary. In essence, this is also reminiscent of the concepts in which the retail sector still served customers with significantly more staff than in previous decades.

Big Chunk In Clothing Market

In addition, the group will of course also use its Big Data applications here to optimize offers and sales. Amazon already has a share of about 10 percent of the total clothing market in the US, which of course also means that the online top dog has a correspondingly large database of the consumer behavior of individual customers – which purely offline retailers simply don’t have at their disposal. If all goes well, Amazon’s online and offline marketing should then be mutually beneficial, as the group can now also target audiences that have barely bought clothes online until now. However, the first store is primarily an experiment that lays the foundation for decisions about further steps.