According to an article published today by The Wall St. Journal, Amazon is preparing to open a new chain of grocery stores in the United States that will not be associated with Whole Foods. The retailer is expected to open the first of these stores in Los Angeles, probably by the end of 2019, and has signed leases for at least two other sites that will open next year, the report says.
The stores will operate separately from Whole Foods, but it is unclear how they will be tagged or even if they will carry the Amazon. first name. The long-term plan calls for the opening of "dozens" of these stores in major US cities. Amazon could even consider an acquisition strategy under this goal, which would involve acquiring regional grocery chains with a dozen stores in operation, the report says. I said. It can also target sales spaces left vacant by Kmart.
San Francisco, Seattle, Chicago, D.C. and Philadelphia are other cities that could see new stores in the future.
The stores would offer a different product mix from Whole Foods, including lower priced items. They can carry a mix of groceries, health and beauty products and include a parking space for picking up groceries.
They will be smaller than a typical grocery store: 35,000 square feet instead of the usual 60,000 square feet, said the WSJ.
The news comes at a time when the Amazon grocery delivery sector is facing stiff competition. His rival, Walmart, capitalized on his physical footprint and his years of testing. Today, Walmart's grocery shopping service is available in more than 2,100 locations and the number of deliveries is close to 800. It is expected to offer pickup in 3,100 locations and delivery. in 1,600 by the end of fiscal year 2020. The company even attributed its strong sales in the fourth quarter. , in part, to the growth of online groceries.
Meanwhile, Target purchased $ 550 million in 2017 for the same day grocery delivery service, and is expanding its own curbside, in-store and overnight delivery services to meet other customer needs.
Amazon is also competing on grocery delivery with Instacart, Postmates and other grocery chain services.
However, his own grocery strategy is a little mixed. In addition to Whole Foods, which offers pick-up and delivery of grocery stores in certain locations, Amazon continues to offer delivery service via AmazonFresh and, in some markets, Prime Now.
At the same time, it is simultaneously invested in convenience stores, without money, under the Amazon Go brand. For consumers, this means that there is not a single point of access to order shopping at Amazon, which can be confusing.
A spokeswoman for Amazon said the company did not comment on rumors or speculation.