Can Amazon Prove It Has Style?

“It’s going to be an interesting challenge for them because the fashion business is one that requires excellent execution,” Santiago said during an interview with Wharton Business Daily on SiriusXM.  “We have yet to see if Amazon can do something as great as they’ve done in the online space.”

Clothing stores are disappearing across America by the tens of thousands, yet even the so-called retail apocalypse isn’t enough to scare away Amazon from the apparel business. The company announced it will open its first clothing store, called Amazon Style, later this year at a shopping center in suburban Los Angeles. The 30,000-square-foot space will offer men’s and women’s clothing from well-known and emerging brands at prices up to $400. While that sounds like a typical department store, what’s different is the use of technology. Amazon Style customers will use an app to facilitate most of their shopping.

Santiago Gallino, a Wharton professor of operations, information and decisions, said a physical store is an important next step for Amazon, but there’s no guarantee that the company will succeed where so many other retailers have failed, especially lately. More than 80,000 stores are predicted to close by 2026, devastated by financial woes, declining sales, high rents, and pandemic-related problems.

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