Posted Mar 2, 2019, 5:47 PM
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Join Date: Jan 2015
Posts: 4,598
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Amazon to open all-new grocery stores separate from Whole Foods
Quote:
Amazon reportedly feels confident enough in its grocery-store quests to branch out into new ventures. According to a report by The Wall Street Journal, Amazon plans to open dozens of new grocery stores that will be distinctly different from the company's Whole Foods Market stores. The retail giant has reportedly already signed leases for some locations and plans to open the new grocery stores in cities across the country, including San Francisco, Seattle, Chicago, Philadelphia, and Washington DC.
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It appears Amazon wants to grab a larger sector of the market by offering a wider variety of items in these new grocery stores than it currently offers at Whole Foods locations. Although the grocer has expanded its offerings since Amazon bought it back in 2017 for $13.7 billion, Whole Foods is generally considered an upper-scale grocery store chain and it continues to have strict food quality standards for the items it carries (no artificial flavor, colors, preservatives, sweeteners, etc).
Aside from the fact that Amazon plans to open some stores this year, little is known about the intended layout. Reportedly, Amazon is looking to open in locations that are smaller than typical grocery stores—35,000 square feet instead of 60,000 square feet. The Wall Street Journal's report also claims Amazon is looking into an "acquisition strategy" for purchasing smaller, local grocery store chains in order to more quickly expand its own plans.
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These new plans come as Amazon continues to roll out new Go cashierless stores across the country as well. Currently, there are Amazon Go stores in Seattle, San Francisco, and Chicago. It's unclear if Amazon intends for its new grocery stores to be cashierless, but the new locations will give the company another avenue to test out such technology if it chooses to do so.
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Something they would try here?
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