Taking on Walmart! Amazon Enters Large-Format Physical Retail with 'Super Store' Blending Online and Offline

Ebrun Exclusive: On January 13, according to foreign media reports, after years of shelving related plans, Amazon has revived its strategy to enter the large-scale physical retail sector by planning to build a big-box store in the suburbs of Chicago—marking the company's first foray into the comprehensive large-format physical retail space.

According to recently disclosed information, Amazon has submitted a proposal to local authorities to construct a facility spanning approximately 225,000 square feet in Orland Park, Illinois, significantly larger than a typical Walmart Supercenter.

The store will adopt a 'hybrid retail' model, serving both as a consumer-facing physical shopping destination and a fulfillment and distribution hub for online orders, aiming to integrate online and offline retail scenarios within a single space.

Planning documents reviewed by local officials indicate the store will cover categories such as groceries and general merchandise, potentially including ready-to-eat meals, positioning it as a one-stop shopping and delivery hub akin to traditional department stores or hypermarkets.

Sources noted that if approved, construction could begin as early as late this year, with support from local officials including Orland Park Mayor Jim Dodge.

Amazon's move into large-format physical retail comes amid a global strategic realignment in retail.

As online traffic growth slows, many e-commerce-native companies are reevaluating the value of physical stores to attract foot traffic, enhance brand loyalty, and optimize logistics. For Amazon, this revival signals renewed confidence in an integrated online-offline retail model.

The company is not new to physical retail, having previously experimented with bookstores, Amazon Go cashier-less convenience stores, and acquiring Whole Foods in 2017, which provided extensive operational and consumer data in grocery retail.

These data assets are expected to inform product assortment and inventory management for the new store, differentiating Amazon from traditional big-box retailers.

However, this project represents a significant leap in scale and positioning compared to past efforts.

As early as 2021, Amazon reportedly planned 30,000-square-foot department-style stores in California and Ohio, but those plans were shelved. The Chicago-area project is seen as a comprehensive upgrade in both size and functional integration.

From a market perspective, rising costs and security issues have led many traditional retailers to close urban stores, creating a supply gap in parts of Chicago that Amazon could exploit. Meanwhile, suburban locations offer practical advantages in land costs, construction space, and consumer demographics, facilitating the operation of such a large-scale store.

Notably, the core highlight of Amazon's strategy extends beyond simply 'opening a store' to deeply integrating retail with logistics.

Documents submitted to the local planning committee show the Orland Park store will function not only as a shopping venue but also as a distribution center for online orders, using in-store inventory for rapid fulfillment to reduce delivery times and last-mile costs, offering a seamless 'browse in-store, order online, and pick up or receive fast delivery' experience.

Analysts note that using the store as a 'mini-warehouse' is the most distinctive aspect, extending Amazon's approach of repurposing commercial space for logistics. In dense suburban markets, this model could yield efficiency and cost advantages, enabling direct competition with retailers like Walmart and Target, which have long blended e-commerce with physical networks.

Additionally, the large footprint allows for experiential retail, potentially featuring electronics demo zones, ready-to-eat dining, or coffee spaces to attract families and impulse buys, increasing foot traffic and dwell time.

While local planning agencies are reviewing the project and approval is likely given governmental support, zoning, traffic impact, and environmental concerns may pose challenges.

Industry observers suggest that if successful in Chicago, the model could be replicated nationwide. Some reports even speculate that Amazon's wearable technology for employee management and inventory tracking, along with AI recommendation systems and Amazon Go's cashier-less tech, could be integrated into the new format.

Ebrun will continue tracking this development. For updates, scan to follow the author on WeChat.