Let’s do a quick thought experiment. First, think about Amazon’s global, massive retail model. What are its main features, and what factors make Amazon so successful? Second, imagine Milan, Italy, one of the fashion capitols of the world. What elements come to mind? Now, compare the two. Are there any similarities?

For most people, Amazon and Milan likely seem to have little in common. Yet Amazon, the world’s largest online retailer, is undertaking a remarkable experiment, in which it is moving away from the digital channels that have largely defined its success to open a physical store in Milan, modeled after popular European pharmacies. It primarily plans to sell premium cosmetics and personal items at a range of price points. Featured cult favorites will include luxury French brands, like La Roche-Posay and Vichy Laboratoires, as well as dermatologist-recommended skincare offerings from CeraVe or Eucerin.

Of course, it’s still Amazon, so digital features also will be prominent in the store. Interactive touchscreens, strategically located around each product line’s central display, will allow customers to access more information about the products and their formulations. Other digital tools will support personalized skincare assessments, so that shoppers can receive customized product recommendations. Although the curated selection within the store also will be available online, it will be limited to select European Amazon marketplaces, available only to consumers in Italy, France, Spain, Germany, and the United Kingdom.

The precise motive for this expansion is not immediately clear. Perhaps Amazon executives have been reading recent reports that indicate that personal grooming represents one of the most rapidly growing product categories being sold by the retailer. Or maybe they are determined to find a formula that will, finally, support Amazon’s omnichannel aspirations. Thus far, its experiments with brick-and-mortar stores have represented a rare, and likely frustrating, failure by the retail giant. The company still operates a limited number of its convenience stores, but Amazon has closed all of its bookstores and clothing locations, among other specialty stores. Can personal care be the segment that moves Amazon into the physical world?

Discussion Questions

1. Why might Amazon have chosen Milan for this test store? Is this location likely to succeed?
2. What features seemingly differentiate this concept store from other physical Amazon locations?

Sources: “Amazon to Expand Beauty and Personal Care Online Offerings in Europe While Opening First Physical Store in Italy,” Amazon News, February 11, 2025; Annie Palmer, “Amazon Opens Beauty and Personal Care Store in Italy as Part of Brick-and-Mortar Expansion,” CNBC, February 11, 2025; Georgina Caldwell, “Amazon Makes a Move on European Cosmetics Retail; Cuts Ribbon on Milan Beauty Store,” Global Cosmetics News, March 5, 2025