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Amazon to expand physical bookstores

Amazon is expanding its brick-and-mortar bookstores.

The e-commerce front-runner opened its first physical bookstore last year in Amazon's founding city, Seattle, and so far, reports say the store has been successful. 

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Now, the company is reportedly expanding Amazon Books to Chicago.

Amazon's claim to fame is its convenience. Customers can go online and find just about anything, so why move to physical bookstores? Some say it's about branding.

The stores stock their shelves based on data from Amazon.com. So reviews, number of sales and popularity decide what customers will see.

This is only the latest in a number of big steps to improve Amazon's reach.

Last month, the retailer unveiled its first branded cargo jet called Amazon One. The company plans to roll more jets out in the next several years.

Plus, the company's highly anticipated drone delivery service is finally going to be tested.

Amazon's expansion announcement comes after Barnes and Noble dismissed CEO Ronald Boire earlier this month. Barnes and Noble's stocks have plummeted recently, and the company determined Boire was "not a good fit" for the role.

Amazon's Chicago bookstore will join the ranks of other confirmed locations in San Diego and Portland.

Barnes and Noble to open restaurants, serve alcohol

Barnes & Noble is merging books and booze to save its book business.

The bookseller is opening four concept stores around the U.S. that will feature full restaurants that sell beer and wine.

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Barnes & Noble already has Starbucks cafes in most of its bookstores, but the new restaurants will feature breakfast, lunch and dinner menus, and a server will take your order.

The first store will open in Eastchester, New York, in October. The three other stores will be in Edina, Minnesota; Folsom, California; and Loudoun County, Virginia, Fortune reported.

The head of the project said it was about creating "a better bookstore" that drives traffic to the store and keeps people there longer.

The company has faced slumping sales recently thanks to people turning to online retailers, like Amazon, to buy books. Its sales fell .8 percent last quarter.

The company's Nook devices and e-book business aren't performing well either. Nook's market share is at 9 percent after it held 27 percent in 2011.

<iframe width="390" height="219" src="https://www.youtube.com/embed/ZDPBuyW6c_k" frameborder="0" allowfullscreen></iframe>

This video includes clips from StarbucksAmazon and Barnes & Noble, and images from Getty Images.

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