Amazon will embrace physical retail by opening its first department store

Amazon plans to open large retail stores in the U.S. to compete with bricks-and-mortar retail.

The news was first reported by the Wall Street Journal, who said the format will be akin to department stores, a move to help the tech company extend its reach in sales of clothing, household items, electronics and other areas. Although the WSJ could not confirm which brands will be sold, its private labels are expected to dominate.

The move would be an extension of Amazon’s digital offer, with many categories like furniture and fashion not yet being sold by physical retailers.