Associated Press
- Before the pandemic, Amazon investigated creating its own discount stores, Bloomberg reports.
- The stores would sell home goods and electronics that would have otherwise gone to waste.
- If Amazon opened the store, it could pose a threat to other electronic stores like Best Buy.
- See more stories on Insider's business page.
Amazon looked into creating discount stores that could sell leftover warehouse goods that were collecting dust, Bloomberg reported on Thursday, citing two sources familiar with the matter.
The sources told the news publication Amazon was investigating the idea of brick-and-mortar discount stores that could sell home goods and electronics before the pandemic started, but the internal talks were paused.
The discount store would not be Amazon's first foray into brick-and-mortar retail locations, as the company already has nearly 100 stores customers can visit, including Amazon Go, a convenience store, and 4-Star, a retail site that focuses on Amazon's best-selling items.
Bloomberg's sources told the news publication that the main focus of the discount store would be off-loading unsold inventory from Amazon's warehouses, and that clothing would likely not be stocked at the locations due to space concerns.
An Amazon spokesperson told Insider they would not comment on "rumors or speculation."
In recent years, Amazon has been expanding its reach from the internet into physical stores.
In 2017, the company bought Whole Foods and just last year the online retailer launched Amazon Fresh grocery store. The company has also expanded into brick-and-mortar bookstores after after high-profile booksellers like Borders went out of business amid the e-commerce boom.
Some users on twitter responded negatively to the news that Amazon looked into creating its own discount store.
"So put everyone out of business then just open the same store," one user @DaveyDigest tweeted.
Other accounts on Twitter expressed concern that an Amazon discount home goods and electronic store would put Best Buy out of business just like Amazon is credited with causing Circuit City to declare bankruptcy in 2008.
In response to the Amazon news on Thursday, Best Buy's stock dipped lower. Just last month, the retailer announced it was laying off 5,000 employees and planning to close more stores.
Read more about Amazon's discussions of the idea over at Bloomberg.