Could Amazon push again into the physical retail space with its new e-commerce platform?

The tech giant intends to open large physical locations in the U.S. similar to department shops.

According to “people familiar with this matter”, the report stated that the new spaces would span 30,000 feet and will carry top-brand items. The report stated that department stores usually take up 100,000 square footage.

Amazon stated in an email statement that it does not comment on speculation and rumors.

Amazon, a Seattle-based company, has tried physical stores before. Amazon Go is the company’s grocery store that allows customers to simply pick up a cart and shop. Then, they can leave using an app to manage their orders.

Amazon has also experimented with physical books stores, and in 2017, acquired Whole Foods for $13.7 billion.

Last year, Simon Property Group, the nation’s largest mall operator, was reportedly in talks with Amazon to convert former Sears and JCPenney stores into distribution centers.

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Although there have been signs of decline in department stores, Amazon’s reported move makes sense, according to Neil Saunders (Managing Director of GlobalData).

Saunders stated that too many people have forgotten the basics of retailing, and neglect basic shopkeeping and merchandising. “Against this background, Amazon’s latest venture into physical retail makes sense,” Saunders said. The shops will likely be smaller than larger department stores, and will be located in areas with high foot traffic rather than failing malls.