According to a report published by Reuters, e-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) plans to shutter all its 68 physical pop-up shops, bookstores and outlets carrying toys and home products in the U.K. and the U.S.
With this move, the company aims to focus on a department store concept and its grocery markets. Amazon opened its first book store in 2015 in Seattle.
Physical stores accounted for only 3% of the company’s sales in the last quarter.
Commenting on the development, Wedbush Securities analyst Michael Pachter said, “Amazon was right to forgo the niche market of brick-and-mortar book shoppers, as bad a match as electric car maker Tesla (NASDAQ: TSLA) opening gas stations.”
Overall, the stock has a Strong Buy consensus rating based on 34 unanimous Buys. The average AMZN price target of $4,218.56 implies 38.7% upside potential. Shares have lost 13.4% over the past six months.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Amazon’s performance.
According to the tool, compared to the previous year, Amazon’s website traffic registered a 21.6% decline in global visits year-to-date.
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