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Amazon to shutter all bookshops and 4-star stores

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On this episode of Talking Shop, we're joined by Dan Cate, CEO and Founder of SoldThrough. Dan is a heavyweight retail executive who has spent decades steering the merchandising and digital operations of America’s most iconic retail institutions, from Saks Fifth Avenue and Bloomingdale’s to Century 21 and Lord & Taylor. Today, through his platform SoldThrough, Dan helps international fashion brands cross the Atlantic and crack the notoriously brutal U.S. retail landscape. We break down his journey from the shop floor to the C-suite, the operational indicators that prove a brand is truly ready for international expansion, and how to navigate a fragmented American market without destroying your margins. We also discuss how to balance localised inventory with central efficiency, and the one non-negotiable metric that tells you a product has found genuine market fit.

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Amazon is set to shutter all 68 of its bookshops, 4-star stores and Amazon pop-ups across the US and UK in a bid to further concentrate on its growing grocery offering.

Closure dates of the bricks-and-mortar sites will reportedly vary by location and it is currently unknown how many roles will be at risk.

It comes as the retail giant sets its sights on its Amazon Fresh and Amazon Go stores, as well as Whole Foods and its LA-based clothing store. It will also look to focus on developing and selling its ‘Just Walk Out’ technology

A spokesperson told The Times: “We’ve decided to close our Amazon 4-star, Books and Pop Up stores, and focus more on our Amazon Fresh, Whole Foods Market, Amazon Go and Amazon Style stores, and our ‘Just Walk Out’ technology.

“We remain committed to building great, long-term physical retail experiences and technologies, and we’re working closely with our affected employees to help them find new roles within Amazon.”

Amazon opened its first UK 4-star store in only October of last year. The Bluewater site currently offers a range of curated products that have been rated four stars and above, are top sellers, or are trending on Amazon.co.uk. 

The retailer also opened its first UK grocery store in Ealing, London, one year ago. Selling prepared meals, groceries, and Amazon devices, the store relies on technology to guide the shopping experience, with shoppers’ purchases noted via ceiling cameras and shelf weight sensors.

A cashless store, consumers gain access to the property via a smartphone QR code, with their registered credit card then being billed as they leave the shop.

Retail Sector has reached out to Amazon for further comment. 

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