Amazon would have enough confidence in its grocery quests to embark on new ventures. According to a report by The Wall Street JournalAmazon plans to open dozens of new grocery stores that will stand out from the company's Whole Foods Market. The retail giant has reportedly already signed leases for some sites and plans to open new grocery stores in cities across the country, including San Francisco, Seattle, Chicago, Philadelphia and Washington DC.
But the first city to have a new Amazon grocery store will be Los Angeles. The report says that Amazon will open this store by the end of this year. Although Amazon has already signed certain leases, this does not guarantee that the company will open stores in all these leased locations.
It seems that Amazon wants to take over a larger sector of the market by offering in these new grocery stores a wider variety of items than what it currently offers in the stores. Whole Foods. Although the grocery store has expanded its offering since Amazon bought it in 2017 for $ 13.7 billion, Whole Foods is generally considered a leading grocery chain and continues to meet food grade standards. strict for its items (no artificial flavors, no color, preservatives, sweeteners, etc.).
Aside from the fact that Amazon plans to open some stores this year, the proposed provision is poorly known. It seems that Amazon is looking to open its doors in places smaller than conventional grocery stores: 35,000 square feet instead of 60,000 square feet. The Wall Street Journal A report also claims that Amazon is considering an "acquisition strategy" for buying smaller and local grocery store chains in order to more quickly develop its own projects.
This initiative continues Amazon's efforts not only in the grocery industry, but across the entire space. Amazon's physical stores, whether they are grocery-oriented or otherwise, are overwhelmed by those of other companies such as Walmart and Target (both of whom have experienced tactics to compete with each other). the retail giant online). Amazon has clearly locked its online retail business and now wants to better understand how people buy in-store by opening more of its own sites across the country.
Amazon almost immediately made changes to Whole Foods after the acquisition. He set up special sales and discounts for Premium members and continued to expand his grocery delivery and pickup services with these additional physical stores. Whole Foods has played a key role in the emergence of Amazon in the grocery sector, and it is likely that Amazon's investment in the chain will not slow downeven in the light of this new venture. As recently as this week, Whole Foods President John Mackey has publicly stated that the partnership is positive.
These new projects come as Amazon continues to roll out new Go Cashierless stores across the country. There are currently Amazon Go stores in Seattle, San Francisco and Chicago. It's hard to know if Amazon wants its new grocery stores to be cashless, but the new locations will give it another way to test this technology if it wants to.