Are Department Stores a Good Next Move for Amazon?

Abstract

Amazon recently announced that it will be piloting brick-and-mortar department stores as an extension of its efforts to open more physical retail locations such as book and grocery stores. The announcement coincides with the company surpassing Walmart as the largest retail chain outside of China after it reported incredible growth in online sales throughout the COVID-19 pandemic. But it also coincides with a time of decline for department stores, with major companies filing for bankruptcy in the last year. This case asks students to evaluate Amazon’s strategy and to discuss its move into physical department stores.