Discount stores

Amazon reportedly explored opening discount stores to get rid of unsold electronics

Amazon explored the idea of ​​opening discount stores or outlets selling unsold electronics and household items at deep discounts, Bloomberg reported. The proceeds would come from inventory in its warehouses, and the company weighed the opening of permanent locations and pop-up stores in malls and parking lots. The inventory would be made up of smaller items that do not take up much space, such as household items, toys, kitchen items, and electronics, but not clothing.

A 2019 report detailed how Amazon is destroying millions of items it can’t sell, ranging from TVs to diapers, though Amazon has subsequently pledged to donate unsold items. “It’s a way to clean the warehouses and go through the inventory without having to destroy it”, one of the Bloombergsources said. Amazon reportedly ditched the idea for now due to the impact of the pandemic on brick and mortar retail, and it just launched the Fresh grocery chain and wanted to focus on that.

Amazon already has a massive retail presence with over 500 Whole Foods stores, 96 Amazon Fresh, Amazon Go and other permanent stores, and seven mall pop-ups, Bloomberg Noted. Discount electronics and housewares stores would be a huge expansion of that, as they are two of the main categories of consumer goods on its website, according to Statista. Given the popularity of Black Friday and other sales, it’s easy to see consumers flocking to stores looking for bargains – good for sales, but not during a pandemic.

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