Column by Jack Ryan
Amazon made its name by becoming a pioneer of internet sales, starting with books and ultimately expanding into just about everything.
So it was a surprise to read recently in The Washington Post that the company is seriously looking at opening its own department stores, where it would sell clothing, electronics and household goods.
The stores would be smaller than those of traditional anchor sites in malls. But in a way it makes sense: If Amazon wants to conquer new segments of the economy, one place to look is where your success has caused a lot of pain.
The company actually has been expanding into brick-and-mortar retail for several years, starting with its 2017 purchase of Whole Foods. It has other small stores too, and analysts say these help Amazon gather information about consumer preferences that can help all of the company’s businesses.
More than that, business at Amazon’s department store competitors has been declining for several years because of their inability to adapt to a changing marketplace. A retail analyst said Amazon’s plans, which apparently will focus on sales of the company’s growing number of private-label brands, would create one more threat to these companies.
Amazon is big — truly the Wal-Mart of this generation. In fact, the company is expected to overtake Wal-Mart as soon as next year as the nation’s largest retailer in terms of sales. Its results cannot be denied, but like Wal-Mart’s success, a significant by-product of this disruption is likely to be fewer regional and national retailers, not to mention fewer small businesses.
The old saying is that change is good. But sometimes you do have to wonder.
