Reportedly, Amazon is planning to open a new grocery chain stores all over the US and it won’t be associated with whole foods, according to a report of the Wall street journal. The retailers want to open the first store of this chain in Los Angeles, probably by the end of 2019. The report further claims that the company signed a contract for the other two locations which will open next year.
Moreover, the stores would be operated separately from the whole foods, it is not clear yet how the new grocery chain would be branded or do they carry the Amazon’s name. The store will carry different products than whole foods which also includes items at low price. The store might carry a range of groceries, health and beauty products, it would include a parking lot area for grocery pickup.
If the company plans to run it in the long run then they should open dozens of stores in major U.S. cities. Amazon may even think of acquisition strategy related to the opening to stores that pick up a regional grocery chain with about a dozen stores under operation. Other cities that could be seeing the new stores in the future include San Francisco, Seattle, Chicago, D.C., and Philadelphia.
Also, these grocery stores may be smaller than a normal grocery store at 35,000 sq. ft. instead of the usual 60,000 sq. ft. according to the reports. The news of Amazon opening up a new grocery chain comes at the time when their delivery business is facing competition from Walmart. Because Walmart’s grocery pickup service is available at more than 2,100 locations and delivery is offered at nearly 800.
Amazon is also in competition with Instacart, Postmates, and services from other grocery chains in terms of delivery. Apart from whole foods, which offers you grocery pickup and delivery in some locations. Amazon will provide you delivery service through AmazonFresh and in select markets Prime Now.