Amazon to Launch Grocery Stores in 3 Major US Cities
Amazon.com reportedly is moving forward with the opening of grocery stores separate from its Whole Foods Market subsidiary, according to SupermarketNews.com. Store locations will begin opening in Philadelphia, Chicago, and Los Angeles, possibly as early as the end of this year, as Amazon has reportedly already signed more than a dozen leases in the Los Angeles area. In March, reports of Amazon's new venture into physical grocery retail detailed that new stores are expected to offer products at lower price points than many of those carried by the company's Whole Foods locations. It's unclear whether the new grocery store chain will be branded "Amazon."
Total Retail's Take: As Whole Foods grows and thrives under Amazon, the e-commerce giant is doubling down on grocery retail and finding yet another new way to reach consumers that may or may not be already shopping on its online marketplace or in its physical stores (Amazon Go, Amazon 4-Stars or Amazon Books). By launching its own grocery store chain, Amazon can be experimental and do things differently than its Whole Foods operation. For example, it plans to entice Prime members with exclusive deals and offers. A new chain of grocery stores will fortify Amazon's omnichannel strategy by increasing its physical footprint, while also making it even more of a competitor to traditional grocery chains as well as Walmart and Target. I'm interested in following how this new concept unfolds, and how Amazon will continue to innovate in the grocery vertical and physical retail as a whole.