Amazon is Reinventing the Department Store for Next Gen Customers

As customers re-enter in-person retail spaces, brands are working to reinvent and innovate their physical storefronts to modernize the in-store experience. With online shopping becoming a staple in many customers’ lives, companies need to find new ways to bring people back into stores — and to do this, many are leveraging new technology to foster excitement for in-store shopping.

On the other hand, eCommerce brands currently benefiting from the rise in online shopping are also working to revive the physical storefront, in hopes of attracting customers who are seeking a more hands-on shopping experience. 

This retail restoration is promising for customers; with brands focused on improving physical storefronts, customers will undoubtedly benefit from consistent innovation and over-the-top experiences — if they want them.

In the most recent case, Amazon has developed plans to open department stores in two major cities across the US, according to The Wall Street Journal. The stores, set to open in San Francisco, California and Columbus, Ohio, are aiming to encourage clothing sales by allowing shoppers to try on pieces from its own private-label brands. According to the exclusive WSJ report, Amazon has apparently struggled with its “endless-store ethos”, which opposes the fashion-industry culture of premium shopping experiences. These premium experiences, the piece notes, often include carefully curated styles, quality designs, and heightened brand power.

To counter the broad appeal it’s currently employing, and leverage the years it spent building up apparel sales, Amazon is working to innovate the in-store experience by curating a new department store environment. The eCommerce company is testing QR code features, where customers can scan items they want to try on with an app, and associates gather the items and conveniently place them in fitting rooms for shoppers. It’s also testing technology that lets customers utilize a touch screen to view related or recommended items, and request more items. 

These new features are interesting and  represent a step towards the ‘hybrid’ store experience many thought-leaders have been predicting. By bringing in the beloved aspects of eCommerce shopping, like recommendations and tailored offers, customers get the best of both worlds. But, it’s worth considering whether this is something they really want — and, if technology like this can actually help reinvent the outdated appeal of the traditional department store.

With long-standing department stores continually closing locations, a trend that existed even before the pandemic began, it seems as though customers are growing out of department store shopping. Additionally, as these brands are recognizing the demand for eCommerce experiences, they are quickly working to repurpose the excess space their storefronts once boasted. Saks Fifth Avenue recently announced its plans to open its first social club SaksWorks, a membership-based coworking space offering beauty treatments, gym facilities, and even an in-house bar. 

News like this makes some wonder why Amazon is attempting to revive a fading concept. But, in defense of the eCommerce brand, if anyone can bring back the in-store experience, it’s Amazon. By continuously advancing retail technology, Amazon can create an entirely new department store experience that resembles a more modern take on luxury shopping. And, without innovative brands like Amazon working to improve in-store experiences, these spaces could all but shut down if customers continue to shop online. Therefore, it seems as though Amazon is taking a necessary step in attracting a new generation of in-store shoppers. Additionally, it could open up opportunities for eCommerce companies to interact with customers in a more personal way, once they gain direct access to store associates. 

Photo by Ron Lach PEXELS