Amazon 4-star is closing down because it has not seen the success that Amazon envisioned at the time of its launch in 2018.
The store's concept was to have a physical location that offered items that Amazon customers had rated four stars or higher on its website. Customers could also come in and try products side-by-side.
Unfortunately, Amazon 4-Star wasn't able to draw a sufficient number of customers in to drive the level of sales Amazon had anticipated. Many customers simply chose to continue using the e-commerce portion of Amazon instead, indicating that targeting customers with the highest rated items wasn't successful.
Additionally, adding in the overhead expenses associated with maintaining physical store locations proved too costly for Amazon 4-Star. According to analysts, the stores were losing money for Amazon and its decision to close them was largely driven by financial reasons.
In summary, Amazon 4-Star was unable to generate sufficient customer traffic and sales to make the stores successful. This, coupled with the associated physical store expenses, lead Amazon to the conclusion that closing the stores was in its best interest.
