The Amazon Effect: Is the Giant to Blame for the Decline of Your Favorite Stores?
- Jordyn Mayes
- Apr 28
- 5 min read
Updated: Jun 16
How One Company’s Rise Could Be the Fall of So Many Others
In a world where we can summon nearly anything with a click or a tap, it’s hard to argue that we’re living in the age of ultimate convenience. With a few quick swipes on our phones, the world is at our fingertips—food, tech, clothes, and even groceries delivered straight to our doorsteps. For many of us, this is a modern-day utopia. But behind this convenient world lurks an unforeseen consequence, one that’s causing disruption in countless industries and wiping out once-thriving businesses: Amazon.
You’ve probably noticed your favorite stores closing down—iconic retailers you grew up with suddenly shuttering their doors. Sure, the pandemic was an undeniable factor, but could Amazon, that lovable yet widespread monster, be playing a larger role in this story? Let’s dive into how the company that promised convenience might be a silent force behind the slow death of traditional brick-and-mortar retail.
A Revolution in Retail – The Birth of Amazon
Before Amazon became the “amazon” it is today, it started in the most humble of places: a garage in Bellevue, Washington, back in 1994. Founded by Jeff Bezos, Amazon originally began as an online bookstore named "Cadabra," a whimsical name inspired by the magic of the word "abracadabra." However, after realizing the name’s eerie resemblance to “cadaver,” Bezos changed the name to Amazon in 1995—reflecting both the vast size of the company he envisioned and the river that symbolizes power and unstoppable flow.
Amazon’s humble beginnings weren’t without their struggles. Despite doubling its revenue from $4.2 million to $8.5 million in 1996, the company still faced heavy losses. Yet, Bezos was undeterred. By the end of 2001, Amazon crossed a significant threshold—its first profitable quarter. The company’s transition from a small online bookstore to a multi-faceted e-commerce and tech giant didn’t happen overnight, but Bezos’ vision and relentless pursuit of innovation laid the foundation for what Amazon would become.
Enter Amazon Prime—A Game-Changer
The introduction of Amazon Prime in 2005 would prove to be one of the most significant moments in Amazon’s history. What started as a two-day delivery service for $79 a year has evolved into an indispensable part of modern life, offering not only rapid shipping but also video streaming, exclusive discounts, and access to a growing library of content.
By 2021, Amazon Prime had amassed over 200 million subscribers globally, with each member spending, on average, $1,400 per year, compared to just $600 spent by non-members. As Prime subscriptions skyrocketed, Amazon’s profits surged, and a new era of online shopping was born. Suddenly, Amazon had cemented itself not just as a retailer but as an essential part of daily life for millions.
But as Amazon’s footprint grew, so did the toll it began to take on traditional retailers. Once-thriving businesses found themselves struggling to compete with Amazon’s low prices, fast shipping, and convenience. Storekeepers would soon find themselves left behind.
The Expanding Empire – Amazon’s Diversification
Amazon didn’t stop at retail. Over the years, the company expanded into nearly every industry possible, further planting itself in our daily lives. Whether it’s media streaming through Prime Video, voice-assisted technology with Alexa, or even grocery shopping via its acquisition of Whole Foods in 2017, Amazon’s reach has become immeasurable.
The purchase of Whole Foods, in particular, raised eyebrows. By acquiring the popular organic grocery chain for $13.7 billion, Amazon instantly gained access to physical retail space in prime locations across the U.S. and a customer base eager to explore the future of grocery shopping. It didn’t take long for Amazon to use its newfound power to streamline the grocery shopping experience—promising speed, convenience, and a digital-first approach. Amazon’s own store brands, like Whole Foods’ 365 line, became an easily recognizable alternative to smaller, locally owned businesses.
Despite its promises to continue serving Whole Foods' traditional clientele, the chain quickly found itself aligning with Amazon’s goals. With 365 products filling shelves, the store inadvertently began to push smaller, local food businesses into the background. What was once a your suburban, high-priced grocery store was becoming just another arm of Amazon’s growing empire.
The Ripple Effect – The Decline of Traditional Retailers
While Amazon’s expansion has been met with excitement from consumers and investors alike, it hasn’t been without consequences. In the wake of Amazon’s growth, numerous well-known retailers have fallen into decline. Big names like Macy’s, Kohl’s, and Party City have been forced to close stores, often citing sluggish sales and inventory issues worsened by Amazon’s reign.
One striking example is Joann Inc., the fabric and craft retailer that announced the closure of 500 stores after filing for bankruptcy protection. For decades, Joann was a go-to for craft enthusiasts, but Amazon’s vast marketplace and convenience made it difficult for the company to maintain its footing. Joann isn’t alone; the list of retail chains succumbing to Amazon’s rise is long. Big Lots, Party City, and even CVS and Walgreens have all announced store closures due to increasing competition from online giants.
This phenomenon is expansive, making it harder for smaller businesses, once considered large, to survive.
The Cost of Convenience – A Closer Look at the Human Side of Amazon’s Rise
While consumers flock to Amazon for its convenience, speed, and low prices, there’s a hidden side to the company’s success. Despite employing millions, Amazon has been criticized for its labor practices, particularly in its warehouses. Reports of harsh working conditions, long hours, and low wages have come to the light, painting an ugly picture of the human cost behind the company’s efficiency.
Additionally, Amazon’s impact on small business owners cannot be ignored. The platform offers a marketplace for third-party vendors to sell their products, but with the power to offer low prices through bulk purchasing and the reliance on overseas manufacturing, many small businesses find themselves cleaned out. The rise of fast fashion, driven by Amazon’s endless array of clothing options, has further contributed to the demise of smaller, local fashion boutiques that once thrived on unique designs and personalized service.
The Future of Retail—What Lies Ahead?
As Amazon continues to grow and expand, the question remains: What happens to all the small businesses and beloved retailers that are now struggling to survive? In a few short years, we could be looking at a retail landscape where Amazon has a dominant, if not overwhelming, presence in nearly every industry.
But what does this mean for consumers? While it’s true that Amazon offers unparalleled convenience and competitive pricing, the rise of the digital marketplace also signals the loss of local businesses and the personal touch they provide. As brick-and-mortar stores close and smaller companies fold, we must ask ourselves if the cost of convenience is worth the end of the community-based shopping experience.
In the coming years, we may find ourselves with fewer places to go, fewer options to choose from, and fewer opportunities to support local entrepreneurs. If we aren’t careful, the rise of Amazon could lead to a retail world that’s more sterile, less diverse, and ultimately less connected. What remains to be seen is whether consumers will continue to flock to convenience at the cost of their communities, or whether a new wave of support for local businesses will emerge to challenge the all-powerful giant. Only time will tell.
Sources:
Benoit, D. (2025, February 25). Store closings in 2025: Joann Fabrics, Big Lots, Macy’s, Kohl’s, JCPenney. Delaware Online. https://www.delawareonline.com/story/news/2025/02/25/store-closings-2025-joann-fabrics-big-lots-macys-kohls-jcpenney/80029790007/
Hendrick, M. (2025, February 25). Fabric and craft retailer Joann to go out of business and close all of its stores. The Atlanta Journal-Constitution. https://www.ajc.com/news/nation-world/fabric-and-craft-retailer-joann-to-go-out-of-business-and-close-all-of-its-stores/RMJKSXP4LFDRREKWSRJZ4K3AGU/
Hopkins, C. (2023). The history of Amazon and its rise to success. Michigan Journal of Economics, University of Michigan.
Whole Foods Market. (2017, June 16). Amazon to acquire Whole Foods Market. Whole Foods Market. https://media.wholefoodsmarket.com/amazon-to-acquire-whole-foods-market/
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