The internet retailer Amazon has announced plans to spend a record $500 million on its own stores in 2017, an attempt to keep up with competition and lure customers back from competitors like Wal-Mart.
But it faces stiff competition from online retailers such as Wal-mart and Target.
Amazon also has plans to open a store in the United Kingdom, although its announcement was delayed after an investigation by the Competition and Markets Authority.
Its plans for its own UK stores have been delayed in part because the government decided to delay the establishment of a new franchisee structure for Amazon’s UK operations.
The government is also considering a plan to allow Amazon to expand its UK operations further into other European countries, according to the BBC.
“Amazon is committed to growing its presence in the UK, but we need to be able to ensure the retailer’s products are of the highest quality and in the most popular locations,” a spokesperson for the company said in a statement.
“We are committed to the long-term success of our UK stores and are looking at how we can deliver a great experience for customers across the UK.”
Amazon has faced pressure from retailers including Walmart, who said the firm’s expansion plans would drive up prices and undercut its customers.
Wal- Mart said it would stop selling Amazon’s products, while Target also pulled its online orders from Amazon’s stores.
Target has already announced plans for a new online store in Canada, but it has yet to announce a new location.
Amazon’s plan for a store expansion has sparked anger in the industry.
“It’s a very expensive venture,” said Paul Pfeifer, an analyst at consultancy Deloitte.
“If Amazon is going to spend $500m, then you’re looking at spending a lot of money to make sure they get what they want.”
He also said Amazon’s expansion would create jobs for local employees, who are already well-paid.
“The best way to create that jobs is to be the retailer,” Mr Pfeig said.
“That would be a very costly venture, and the best way for Amazon to avoid that is to get out of the way.”
Amazon’s plans for an expanded UK store will come after it had previously announced plans in other parts of the world.
Amazon said in January it planned to open an Amazon store in Spain, France, Portugal, Switzerland and the UK.
“In the future, Amazon plans to invest in the growth of its retail presence across the world, in addition to its existing retail footprint in the US and Europe,” Amazon said.
“As part of these expansions, we plan to create new jobs for some of our current customers, as well as the local employees who work for Amazon in those countries.””
As part of these expansions, we plan to create new jobs for some of our current customers, as well as the local employees who work for Amazon in those countries.”