Due to the slowdown in its operations, Amazon decided to close 68 physical stores across the United States and the United Kingdom. The decision affects Amazon Books and Amazon 4-star and Amazon Pop Up stores.
Until this news was published, the company had not reported the reasons for this determination. Version of media such as CNBC They attributed this to the fact that “physical store unit sales growth lagged far behind the company’s retail business.”
For example, they detailed that traditional outlets or businesses like Whole Foods “reported lower sales in 2021 than in 2018.” In fact, the stores are experiencing their worst quarterly performance since 2001 and the company’s shares have plunged 8 percent so far this season.
In a statement, Amazon said it “remains committed” to creating long-term brick-and-mortar retail concepts and technologies. Proof of this is the recent opening of Style, which sells clothing.
CNBC added that the retail giant did not specify a date for store closures or how many people might lose their jobs. However, he confirmed that he would “help affected employees find other positions at the company.” Those who opt out will be given severance packages, he said.
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