The Strategist

Amazon bets on offline retail

08/26/2019 - 11:16

Amid a slowdown in online business growth, the American retailer is considering the prospects of retail stores.

The US retail giant is opening another 4-Star store in Boston plus one more Amazon Books outlet in Nashville. Thus, the retailer is expanding its offline retail presence by betting on projects other than Whole Foods. The latter accounts for the lion's share of Amazon’s  offline retail stores.

Why does Bezos need this? The reason is the search for new development paths. According to Business Insider, the Internet segment is not developing as fast as the owners of the company would like.

Growth of online sales of Amazon has been weak during the past few quarters. In the II quarter of 2019, the volume of the company's sales in retail reached $ 31 billion, which is 16% of annual growth. And this was the best quarterly indicator since the end of 2017.

However, lately Amazon’s online retail growth has been largely unchanged, from 11% to 14%. This may be the result of  changes in macroeconomics or saturation of the brand.