“They haven't proven they know how to merchandise, they haven't proven they know how to operate, they haven’t proven they know how to brand, they haven't proven they know how to assort. “Warehouse fulfillment is a lot easier than running a retail store because, in retail, you’ve got to be good at the logistics and technology - plus 10 other things,” Egelanian said. And - unlike the many independent booksellers that have survived the price-based disruption unleashed by Amazon a quarter century ago - Amazon’s bookstores were not curated in ways that invited browsing or discovery, but instead mainly featured bestsellers. This was especially true of its 4-star stores, which were merchandised with items selling well on its website, leading to a jumbled assortment of random stuff. Several observers including Egelanian have described Amazon’s non-grocery stores as unfocused. We know that they don't think those stores were so great, because they closed them.” “I don't think anybody would say they’ve run phenomenal stores. “T heir ability to fulfill the way they do is a pretty amazing feat. That's well understood,” Nick Egelanian, president of retail development firm SiteWorks, said by phone. For years now, its third-party marketplace sellers have been responsible for the bulk of the merchandise sold on its site. Then again, Amazon’s business is centered around logistics, technology and, increasingly, advertising, and not retail, some experts say. “I believe Amazon’s decision to close its physical locations failed to take this into account, and could possibly impact their business going forward as shoppers move back to physical retail post-pandemic.” Not a retailer? “Even as e-commerce continues to boom, brick-and-mortar locations play a significant role in enabling customers to have an immersive, in-person shopping experience,” Goetsch said by email. Bigger picture, the company is withdrawing from a major part of the retail landscape, according to Kelly Goetsch, chief strategy officer at headless commerce platform Commercetools. But by doing so, it may have lost an opportunity to take full advantage of its own pricing and tech prowess, and could be forfeiting sales in some categories, according to Big Village General Manager David Albert. Amazon said by email it closed these stores so it could focus on its other physical retail and tech offerings, and preserve its ability to innovate and scale its business for the long run.
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