Amazon Expands Retail Presence By Opening First 4-Star Store Outside The U.S.

Amazon has expanded its retail presence yet again by opening its first non-food store outside the U.S., building upon the launch of its first grocery stores and a trial hair salon in the U.K.

The Amazon 4-star shop, located in the popular Bluewater shopping mall near Dartford, just outside London, opened this morning and offers around 2,000 of its most popular and best-rated products in a concept established in the U.S. called Amazon 4-star, because every item has been rated more than four stars by customers.

This is the first Amazon 4-star store outside the U.S., where there are already 32 outlets after making their debut in New York in 2018, and adds to the six Amazon grocery convenience stores which have opened this year in the U.K, featuring checkout-free technology.

The new store is around 3,500 sq ft and directly takes on the likes of department store chain John Lewis and the U.K.’s leading consumer electronics chain, Currys, which has already been disparaging about the range on offer and how the product mix works together.

It is not alone, a number of retail commentators have raised doubts about whether algorithm-selected merchandise works as cohesively in a physical space as it does online.

Trending Products At Amazon 4-star

The range of products at the new store, which includes books, consumer electronics, toys, games and homewares, reflects what Amazon customers are buying online. There is a ‘Most Wished For’ section, showcasing the most popular products from customers’ wish lists.

There is also a ‘Trending in Bluewater’ section, which will showcase items local customers have been buying, while ‘Most Gifted’ will feature the top items ordered as gifts. Amazon says it will cycle products regularly based on customer feedback and to keep up with the latest trends. 

Digital price tags are used to ensure the prices are the same in-store and online and shoppers do not have to have an Amazon account to use it. Customers can also collect items ordered online as well as return items without the need for packaging and labels.

Andy Jones, director of Amazon 4-star U.K., declined to reveal how many more stores he plans to open in the U.K. but said “convenience is part of the store offer”, adding that the store does not use the “just walk out” technology of its convenience stores and instead shoppers can scan a QR code and get billed later from their account, with buyers emailed once their receipt is ready, or pay using traditional counters.

Jones said plans for the U.K. debut had been in the pipeline since around 2019 and told London’s Evening Standard newspaper: “This is a store that has been created by customers for customers… It is another opportunity for us to innovate on behalf of customers.”

Amazon: Savior Of Main Street?

Amazon has invested big in physical real estate ever since it bought U.S. grocery chain Whole Foods WFM . Since then, Amazon has opened book stores, convenience and grocery stores, the 4-Star concept and pop-ups, as it trials different formats and offers.

The new concepts have invariably started in the U.S. and then been further tested in the U.K., where the online giant has a small but growing store presence.

While landlords have broadly welcomed the arrival of Amazon stores, despite the fact that it has done as much as any business to rival main street, the reality is that Amazon’s roll-out is likely to be limited to flagship schemes and shopping avenues.

Questions also remain about whether it can establish relevance in highly competitive markets. The U.K.’s grocery sector, for example, includes giants such as Tesco and Sainsbury’s, plus German discount kings Lidl and Aldi. Amazon Fresh AMZN has failed to make major inroads, despite the growing online penetration into the supermarket business.

Similarly, consumer electronics market leader Currys has evolved into a big box, out-of-town retailer with a strong online offer, meaning its stores include a very wide range of products and brands.