Never saw those in real life, but I don't get why a part of Amazon Retail is interested in having actual stores. Most (nearly all?) their customers use them because they can deliver 1-2 day shipping on a ton of items without having to go out to shop. Need some niche hydroponic nutrients, they have it. Need some precise book that your typical bookstore doesn't have, they have it.
I don't see why I'd want to go to an Amazon Shop instead of Wal-mart, Canadian Tire, Target, whatever else already exists. It's a market with razor-thin margins that's absolutely doesn't fit their current approach and growth focus.