According to the Wall Street Journal, Amazon is planning a major expansion of hundreds of new physical bookstores.
There are some comments that were cited by the WSJ on an earnings call by Sandeep Mathrani, who is the CEO of the Chicago-based mall operator General Growth Properties Inc.
“You’ve got Amazon opening brick-and-mortar bookstores and their goal is to open, as I understand, 300 to 400,” said Mr. Mathrani in response to a question about mall traffic.
Amazon didn’t give the WSJ any comments on Mathrani’s statement.
The first Amazon retail store opened in Seattle this past November. Not only does the shop sell books, it also sells a selection of Amazon specific devices, such as the Kindle, Echo and Fire tablet.
A possible reason why Amazon would think of doing such a large expansion into brick-and-mortar stores is due to several reasons, according to the WSJ. They believe that Amazon could use the stores as mini-warehouses, which would help speed up home delivery, to making it easier to handle returns. Also, another reason could be that, according to the Commerce Dept., only 7.4 percent of retail sales in Q3 last year happened online.