{"id":75525,"date":"2025-11-02T19:21:39","date_gmt":"2025-11-02T19:21:39","guid":{"rendered":"https:\/\/dralysstore.com\/blog\/?p=75525"},"modified":"2025-11-03T04:52:37","modified_gmt":"2025-11-03T04:52:37","slug":"ai-will-accelerate-the-end-of-brick-and-mortars-reign-amazon-ceo","status":"publish","type":"post","link":"https:\/\/dralysstore.com\/blog\/ai-will-accelerate-the-end-of-brick-and-mortars-reign-amazon-ceo\/","title":{"rendered":"AI will accelerate the end of brick and mortar\u2019s reign: Amazon CEO"},"content":{"rendered":"<div>\n<div class=\"text-to-speech\"><button class=\"text-to-speech__button button\"><br \/>\n<img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.retaildive.com\/static\/img\/play.svg?500116090725\" alt=\"\" \/><br \/>\nListen to the article<br \/>\n<span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n<\/button><\/p>\n<div class=\"text-to-speech__controls\"><audio class=\"js-text-to-speech\" preload=\"none\" controls=\"controls\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/804349\/2025-10-31_11.23.10\/amazon-ceo-andy-jassy-ai-accelerate-end-brick-and-mortar-retail-dominance.wav\" type=\"audio\/mp3\" \/><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">This audio is auto generated. Please let us know if you have <a href=\"https:\/\/www.retaildive.com\/contact\/\" target=\"_blank\" rel=\"noopener\">feedback<\/a>.<\/div>\n<\/div>\n<\/div>\n<p>Amazon sees \u201ca significant opportunity\u201d for growth in its existing physical stores, which are centered on grocery at least for now. The e-commerce giant announced plans to expand same-day deliveries of fresh groceries, now in 1,000 U.S. cities, to 2,300 by the end of the year.<\/p>\n<p>Even that could be seen as an extension of e-commerce as much of physical retail. In any case, despite the current dominance of brick and mortar, e-commerce will ultimately take over, and AI is making that happen even faster than before, Andy Jassy told analysts on a Thursday earnings call.<\/p>\n<p>\u201cI still think if you look at the worldwide market segment share of retail, still 80% to 85% of it lives in physical stores,\u201d he said. \u201cThat equation is going to flip over time. And I think AI is going to only accelerate that.\u201d<\/p>\n<p>Physical retail remains a small, if growing, portion of Amazon\u2019s retail operation. In <a href=\"https:\/\/s2.q4cdn.com\/299287126\/files\/doc_financials\/2025\/q3\/AMZN-Q3-2025-Earnings-Release.pdf\" target=\"_blank\" rel=\"noopener\">Q3 online store sales rose 10%<\/a> year over year to $67.4 billion, while physical stores sales rose 7% to $5.6 billion, according to financial filings Thursday. Overall product sales rose 9.6% to $74.1 billion. There\u2019s a price to all of that e-commerce, as worldwide shipping costs rose 8% to $25.4 billion.<\/p>\n<p>Several analysts noted that Amazon is taking share in retail. But other aspects of the retail business are growing faster than either the online or offline channel. Seller services sales grew 12% to $42.5 billion; advertising grew 24% to $17.7 billion; and subscription services grew 11% to $12.6 billion.<\/p>\n<p>Whatever the impact of AI on the retail landscape, there\u2019s no doubt it\u2019s fueling Amazon\u2019s tech operation, and Amazon\u2019s tech operation is fueling profits.<\/p>\n<p>Most analyst reports released Thursday and Friday focused on the company\u2019s AWS unit, where Q3 net sales rose 20% year on year to over $33 billion. Even with estimated severance costs related to planned layoffs, AWS segment operating income rose over 9% to $11.4 billion. Overall operating income, including two special charges $2.5 billion from a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs related to planned layoffs was essentially flat from last year at $17.4 billion.<\/p>\n<p>\u201cClearly AWS continues to drive the bus here, with acceleration in growth and better-than-expected operating margin in the segment,\u201d William Blair analysts led by Dylan Carden said in a Friday client note.<\/p>\n<p>The <a href=\"https:\/\/www.retaildive.com\/news\/amazon-layoffs-14k-jobs-stay-nimble\/803965\/\" target=\"_blank\" rel=\"noopener\">14,000 layoffs<\/a> confirmed by Amazon earlier in the week are also tied to AI, as the company said it anticipates a need for fewer people as generative AI continues to advance.<\/p>\n<\/div>\n<hr \/>\n<p><strong>Published by Dralys Blog \u2013 Stories | Insights | Innovation<\/strong><\/p>\n<p>Discover more on <a href=\"https:\/\/www.dralysstore.com\" target=\"_blank\" rel=\"noopener\">DralysStore.com<\/a><\/p>\n<div class=\"pld-like-dislike-wrap pld-template-2\">\r\n    <div class=\"pld-like-wrap  pld-common-wrap\">\r\n    <a href=\"javascript:void(0)\" class=\"pld-like-trigger pld-like-dislike-trigger  \" title=\"\" data-post-id=\"75525\" data-trigger-type=\"like\" data-restriction=\"no\" data-already-liked=\"0\">\r\n                        <i class=\"fas fa-heart\"><\/i>\r\n                <\/a>\r\n    <span class=\"pld-like-count-wrap pld-count-wrap\">    <\/span>\r\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Listen to the article 3 min This audio is auto generated. Please let us know&hellip;<\/p>\n","protected":false},"author":1,"featured_media":75548,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,40],"tags":[74,34,65,78,203,205,176,202,204,10],"class_list":["post-75525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce-shopping","category-technology-innovation","tag-dralys","tag-e-commerce","tag-entrepreneurship","tag-ai","tag-artificial-intelligence","tag-business-innovation","tag-ecosystem","tag-online-shopping","tag-retail-trends","tag-technology"],"acf":[],"jetpack_featured_media_url":"https:\/\/dralysstore.com\/blog\/wp-content\/uploads\/2025\/11\/jjjj.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/75525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/comments?post=75525"}],"version-history":[{"count":2,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/75525\/revisions"}],"predecessor-version":[{"id":75549,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/75525\/revisions\/75549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/media\/75548"}],"wp:attachment":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/media?parent=75525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/categories?post=75525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/tags?post=75525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}