The rumor mills may be churning out something more substantial, as reports continue to solidify initial suspicions that Amazon is looking to buy up out-of-demand department stores to further expand its physical presence in formerly competitive spaces.
According to a report from The Wall Street Journal, Simon Property Group has been exploring with Amazon the possibility of using department stores as new fulfillment centers or distribution hubs.
Simon Property Group, the largest mall owner in the United States, has been in talks with Amazon to take over space left by increasingly out-of-demand stores like J.C. Penney and Sears.
People familiar with the matter noted that these talks have centered around the acquisition and conversion of stores formerly or currently occupied by either J.C. Penney or Sears.
Although uncertain how many stores are under consideration, these talks exemplify why Amazon has maintained its position as a retail tour de force.
Utilizing the power of e-commerce with the strategic positioning of brick-and-mortar hubs, Amazon is one such competitor always looking to the future. As to how this will or will not blend traditional department outlets with Amazon’s increasing grocery innovations, Deli Market News will be sure to report what we find out.