Amazon Plans to Open Convenience Stores
According to The Wall Street Journal, Amazon.com plans to open convenience stores that sell milk, produce and other consumables, as well as drive-up destinations where shoppers can have their orders brought to their cars. People familiar with the strategy told the paper that shoppers could use their smartphones or screens scattered around the shops to place their orders. The drive-up service, which replicates Wal-Mart's successful online grocery strategy, would be designated for shoppers who place their orders ahead of time. A spokeswoman for Amazon didn't immediately respond to CNBC's request for comment.
Total Retail's Take: Amazon won't cede anything to Wal-Mart. This news from Amazon comes just a few days after Wal-Mart announced that its grocery pickup service was a key driver in its online sales growth, and that the service was being rolled out to more markets and stores (100 and 600, respectively, by year's end). Amazon has identified online grocery as its next big growth opportunity, and what Amazon wants, it typically goes after and gets.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.