INSUBCONTINENT EXCLUSIVE:
A report from The Wall St
Journal today claims Amazon is preparing to open a new chain of grocery stores across the U.S
that won&t be associated with Whole Foods
The retailer is expected to open the first of these stores in L.A., possibly by the end of 2019, and has signed leases for at least two
other locations opening next year, the report claims.
The stores will be separately operated from Whole Foods, but it not clear yet how
they&ll be branded or even if they&ll carry the Amazon name
The longer-term plan involves opening &dozens& of these stores in major U.S
cities, and Amazon may even consider an acquisition strategy related to this goal, which would see it pick up regional grocery chains with
about a dozen stores under operation, the report said
It may also target retail space vacated by Kmart.
Other cities that could be seeing the new stores in the future include San Francisco,
and Philadelphia.
The stores would carry a different product assortment than Whole Foods, including items at lower price points
They may carry a mix of groceries, health and beauty products, and would include a parking lot area for grocery pickup.
They&ll be smaller
than a typical grocery store at 35,000 sq
instead of the usual 60,000 sq
ft., The WSJ said.
The news comes at a time when Amazon grocery delivery business is facing steep competition
Its rival Walmart has capitalized on its brick-and-mortar footprint and years of testing
Today, Walmart grocery pickup service is available at more than 2,100 locations and delivery is offered at nearly 800
It expects to offer pickup at 3,100 locations and delivery at 1,600 locations by the end of fiscal year 2020
The company even attributed its strong Q4 sales, in part, to the growing online grocery business.
Target, meanwhile, picked up same-day
grocery delivery service Shipt for $550 million in 2017, and has been expanding its own drive-up, in-store pickup and next-day delivery
services to cater to shoppers& other household needs.
Amazon also competes on grocery delivery with Instacart, Postmates and services from
other grocery chains.
However, its own grocery strategy is a bit mixed
In addition to Whole Foods, which offers grocery pickup and delivery in some locations, Amazon continues to offer delivery service through
AmazonFresh and, in select markets, Prime Now.
Meanwhile, it simultaneously invested in cashierless, grab-and-go convenience stores, under
the Amazon Go brand.For consumers, that means there not one single point of access for ordering groceries from Amazon, which can lead to
confusion.
Reached for comment about the WSJ report, an Amazon spokesperson said the company doesn&t comment on rumors or speculation.
