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In a bid to strengthen the offline retail business, Amazon (AMZN - Free Report) has finally opened its first clothing store, namely Amazon Style, in Glendale near Los Angeles, CA, which was announced at the beginning of this year.
The new store stocks clothing from a wide range of brands including Levi’s, Tommy Hilfiger, Lacoste, Steve Madden and Champion, to name a few.
It leverages the Machine Learning (ML) technology to offer an enhanced and smart shopping experience to customers by helping them find the item they are looking for.
In addition, Amazon Style provides real-time recommendations to each customer with the help of ML algorithms.
Further, the store features high-tech fitting rooms, which will allow customers to scan QR codes of garments on display using Amazon’s app to select their preferred size and color. After the process, the chosen garment will be sent directly to the fitting rooms to try on.
With the underlined store, the company strives to expand its reach to customers in the present scenario wherein more people are opting to shop offline by visiting physical stores, with the relaxation of COVID-19 restrictions.
Further, the opening of Amazon Style is likely to strengthen the fashion retail business.
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering the company’s online and offline retail presence, boosting distribution channels as well as accelerating delivery.
Apart from Amazon Style store plans, the company’s intentions to expand the Whole Foods store network across the United States remain noteworthy.
The increasing number of Amazon Fresh grocery stores across the United States is another positive. Currently, the number is more than 20 in the United States.
The growing customer base of Amazon Go, which is a cashier-less store of the company, remains another major positive. It is to be noted that Amazon currently has more than 25 such stores.
Further, the expansion of the Amazon 4-star store — which stocks products rated four stars or more from categories like kitchen appliances, home, toys, books, devices, consumer electronics and games — remains another positive.
We note that deepening retail focus and expansion of the physical presence of Amazon pose serious risks for brick-and-mortar stores as well as big retail chains like Walmart (WMT - Free Report) , Target (TGT - Free Report) , and Costco (COST - Free Report) .
Intensifying Retail Battle – A Threat
Amazon, which currently carries a Zacks Rank #5 (Strong Sell), continues to face stiff competition from the abovementioned retailers due to their robust expertise in the physical retail space and strong customer base. This, in turn, might make investors worrisome about the stock.
It is to be noted that Walmart is benefiting from a strong inventory position and lower markdowns. Further, with more customers and members returning to stores and clubs, demand seems strong for the company.
Also, Walmart’s wide variety of stores including discount stores, supercenters, Sam’s Clubs and Neighborhood Markets are aiding the company in sustaining momentum in the retail market.
Further, Target is gaining from the growing technology investments and modernization of the supply chain. Further, its increasing number of general merchandise stores — which provide an edited food assortment including perishables, dry grocery, dairy and frozen items — remains a positive. The expanding customer base of TGT’s small-format stores, which offer curated general merchandise and food assortments, is another tailwind.
Meanwhile, Costco is benefiting from growth initiatives, improved price management, and its strategy to sell products at discounted prices that helped attract customers seeking both value and convenience.
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Amazon (AMZN) Unveils Amazon Style, Boosts Physical Presence
In a bid to strengthen the offline retail business, Amazon (AMZN - Free Report) has finally opened its first clothing store, namely Amazon Style, in Glendale near Los Angeles, CA, which was announced at the beginning of this year.
The new store stocks clothing from a wide range of brands including Levi’s, Tommy Hilfiger, Lacoste, Steve Madden and Champion, to name a few.
It leverages the Machine Learning (ML) technology to offer an enhanced and smart shopping experience to customers by helping them find the item they are looking for.
In addition, Amazon Style provides real-time recommendations to each customer with the help of ML algorithms.
Further, the store features high-tech fitting rooms, which will allow customers to scan QR codes of garments on display using Amazon’s app to select their preferred size and color. After the process, the chosen garment will be sent directly to the fitting rooms to try on.
With the underlined store, the company strives to expand its reach to customers in the present scenario wherein more people are opting to shop offline by visiting physical stores, with the relaxation of COVID-19 restrictions.
Further, the opening of Amazon Style is likely to strengthen the fashion retail business.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Growing Retail Focus
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering the company’s online and offline retail presence, boosting distribution channels as well as accelerating delivery.
Apart from Amazon Style store plans, the company’s intentions to expand the Whole Foods store network across the United States remain noteworthy.
The increasing number of Amazon Fresh grocery stores across the United States is another positive. Currently, the number is more than 20 in the United States.
The growing customer base of Amazon Go, which is a cashier-less store of the company, remains another major positive. It is to be noted that Amazon currently has more than 25 such stores.
Further, the expansion of the Amazon 4-star store — which stocks products rated four stars or more from categories like kitchen appliances, home, toys, books, devices, consumer electronics and games — remains another positive.
We note that deepening retail focus and expansion of the physical presence of Amazon pose serious risks for brick-and-mortar stores as well as big retail chains like Walmart (WMT - Free Report) , Target (TGT - Free Report) , and Costco (COST - Free Report) .
Intensifying Retail Battle – A Threat
Amazon, which currently carries a Zacks Rank #5 (Strong Sell), continues to face stiff competition from the abovementioned retailers due to their robust expertise in the physical retail space and strong customer base. This, in turn, might make investors worrisome about the stock.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It is to be noted that Walmart is benefiting from a strong inventory position and lower markdowns. Further, with more customers and members returning to stores and clubs, demand seems strong for the company.
Also, Walmart’s wide variety of stores including discount stores, supercenters, Sam’s Clubs and Neighborhood Markets are aiding the company in sustaining momentum in the retail market.
Further, Target is gaining from the growing technology investments and modernization of the supply chain. Further, its increasing number of general merchandise stores — which provide an edited food assortment including perishables, dry grocery, dairy and frozen items — remains a positive. The expanding customer base of TGT’s small-format stores, which offer curated general merchandise and food assortments, is another tailwind.
Meanwhile, Costco is benefiting from growth initiatives, improved price management, and its strategy to sell products at discounted prices that helped attract customers seeking both value and convenience.