Amazon's New Style Department Store Concept Kicks Sand In the Face of Investors Who Think Retail #Innovation is Dead

Amazon's New "Style" Department Store Concept Kicks Sand In the Face of Investors Who Think Retail #Innovation is Dead

Following a year when #retail investors are running away from store valuations, #Amazon is still showing people what's possible in retail through digital technology.

Remember when I talked about what "noun" Amazon would use to anchor its department store? Well the name is "Style" and I think by and large it's one of the best choices they could have made. The name is versatile, aspirational, and merchandise-inclusive.

Amazon released a video that I scanned a few times.

Merchandise appears to be apparel and accessories. Shirts, sweaters, coats, hats, shoes, all typical department store stuff.

With a name like Style, I would imagine Amazon could put anything here I might imagine in a typical Macy's.

Coming later in 2022 in Los Angeles. Test and learn. This is not scaled.

Let's break down the innovations introduced here, relative to the typical retail store.

>Store - No size runs on the floor itself. Size runs are in the back room. Not totally unique but uncommon.

The negative here is you can't hold up an item to your body if your size isn't the one n the floor.

- You don't have to shlep products to fitting rooms. Just add it to your list, and it will "appear" there by magic Amazon elves.

Scan a QR and send the product to a fitting room, or the "Pickup" area. (They don't call it checkout, because ... they already known your credit card).

You can select multiple styles, sizes and colors for the same item.

- The store is literally watching what you look at for personalization reasons later.

- I don't get the sense that these stores are truly "Just Walk Out" because there are no size runs, and you would be walking out with the model.

>Fitting Room

- in this store, the fitting rooms are open ;-). many fitting rooms are not even open right now in typical stores I visit.

- you don't wait in line for a fitting room, associates populate it for you, and you get a notification from amazon when your room is ready

- you unlock your secure fitting room with amazon's app

- inside, fitting room touchscreen gives you an "upsell/complete the look/suggestions" ont he wall which allows you to browse merchandise personalized based on what you look at in the store. You can get it sent to your fitting room.

Let me say this again. Amazon is surveilling what you look at in the store. I posted about this a few months ago, knowing that "Just Walk Out" works this way, but they are advancing on this idea.

Pickup Area

- You do have to shlep your items to the "Pickup" area, where the agent will give you a bag. But they don't give you a receipt and you don't have to pay, because ... well it's all digital and they already have your credit card.

This will likely change when cash is involved.

I came away impressed. What did I not see?

- returns experience. Obviously a big topic and one of the reasons for the store.