Amazon confirmed to CNBC that it will close all Pop Up, Amazon Books, and 4-star businesses. Aside from supermarkets, Amazon has opened retail locations displaying Amazon-branded devices and top-selling products from its online site.
But physical store sales growth has lagged behind the company’s overall retail business.
Amazon is closing its physical Amazon Books stores, as well as Amazon 4-star and Amazon Pop Up stores that offered gadgets and other trendy items.
Amazon said 68 locations in the US and UK will close. Amazon claimed it will help affected staff find jobs elsewhere inside the company. Those who leave will be compensated, it claimed.
Amazon did not indicate how many employees would be affected.
Reuters first the news of the store closures.
Retail stores and supermarkets selling Amazon products like Fire tablets and Echo smart speakers have progressively emerged. The 4-star stores tried to merge Amazon’s in-store and offline operations by promoting top-selling products online.
But physical store sales growth has lagged behind the company’s overall retail business. Whole Foods and Fresh locations reported lower sales in 2021 than in 2018.
This comes after Amazon’s weakest quarterly growth rate since 2001. Shares are down over 8% this year, and were the poorest performer in Big Tech last year.
