The business model interpreted by Amazon.com seemed untenable, at least in the US where the e-commerce pioneer could also boast a rich endowment of physical stores. However, perhaps the ecosystem built so far needs to be revised and corrected, it certainly highlights many points of reflection. In short, Amazon said it would close six Whole Foods Market locations in four states, nearly two months after closing dozens of bookstores and gift shops across the country.
The closed offices of more than 500 stores nationwide are located in Montgomery and Mobile, Alabama; Tarzana, CA; Brooklyn, Massachusetts; and the Inglewood and DePaul neighborhoods of Chicago, Amazon said Friday. Five stores will be closed by May 6 and the Englewood office will close in the coming months.
“As we continue to position Whole Foods Market for long-term success, we regularly assess the performance and growth potential of each of our stores and have made the difficult decision to close six stores,” a Whole Foods spokesperson said in a statement. E-mail. “We support affected team members during this transition and expect all interested and qualified team members to find jobs at our other locations.”
Amazon claimed to be Warehouse space And the redundant employees when it explained an unexpected loss in the first quarter and a bleak outlook for the current period. Online sales fell 3% in the quarter. Shares fell 14 percent on Friday, the biggest one-day drop since July 2006.
Revenue from traditional stores, especially Whole Foods, was one of the few good points in amazon quarterly resultsThe turnover was $4.59 billion, up 17% from the previous year.
Physical stores are essential in retail, but Amazon has played down the complexity of the end-to-end channel and its impact on profitability
Amazon announced in March that it would closed Physical bookstores, “4-star Amazon” sites, and pop-up kiosks in malls to constrain their tangible efforts in the food sector. The Seattle-based company took the biggest step into physical retail in 2017 with its acquisition of the $13 billion Whole Foods market. Since then, the company has also launched its own Amazon Fresh supermarkets and now has more than 20 locations in California, Illinois and the Mid-Atlantic region.
Chicago Mayor Lori Lightfoot said Friday that the decision to close two stores in her hometown was “disappointing.” He was concerned about workers and the harm to some residents of the community who risk having few other shopping options. The mayor also said that it will be necessary to find new uses so that places do not remain empty.
“Together with the communities and local elected leaders, my administration will work to reuse these sites in a way that continues to serve the community and support the surrounding businesses,” Lightfoot said in a statement. “We as a city will continue to work hard to shut down food deserts that cater to the community with community at the table.”
The Englewood office opened in 2016 with great fanfare by then-mayor Rahm Emanuel, who advocated it as a way to bring fresh food and economic opportunity to the social communication Income minority on the south side of town. This month Amazon opened new Whole Foods near the Chicago River North and Gold Coast neighborhoods.
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