WSJ: Amazon to open new US grocery chain separate from Whole Foods

A report from The Wall St. Journal right this moment claims Amazon is making ready to open a brand new chain of grocery shops throughout the U.S. that received’t be related to Complete Meals. The retailer is predicted to open the primary of those shops in L.A., probably by the tip of 2019, and has signed leases for not less than two different places opening subsequent 12 months, the report claims.

The shops might be individually operated from Complete Meals, however it’s not clear but how they’ll be branded or even when they’ll carry the Amazon identify. The longer-term plan includes opening “dozens” of those shops in main U.S. cities, and Amazon could even take into account an acquisition technique associated to this purpose, which might see it decide up regional grocery chains with a couple of dozen shops underneath operation, the report stated. It could additionally goal retail house vacated by Kmart.

Different cities that may very well be seeing the brand new shops sooner or later embrace San Francisco, Seattle, Chicago, D.C. and Philadelphia.

The shops would carry a unique product assortment than Complete Meals, together with gadgets at lower cost factors. They could carry a mixture of groceries, well being and wonder merchandise, and would come with a car parking zone space for grocery pickup.

They’ll be smaller than a typical grocery retailer at 35,000 sq. ft. as an alternative of the same old 60,000 sq. ft., The WSJ stated.

The information comes at a time when Amazon’s grocery supply enterprise is going through steep competitors. Its rival Walmart has capitalized on its brick-and-mortar footprint and years of testing. At this time, Walmart’s grocery pickup service is on the market at greater than 2,100 places and supply is obtainable at practically 800. It expects to supply pickup at 3,100 places and supply at 1,600 places by the tip of fiscal 12 months 2020. The corporate even attributed its sturdy This fall gross sales, partially, to the rising on-line grocery enterprise.

Goal, in the meantime, picked up same-day grocery supply service Shipt for $550 million in 2017, and has been increasing its personal drive-up, in-store pickup and next-day supply providers to cater to consumers’ different family wants.

Amazon additionally competes on grocery supply with Instacart, Postmates and providers from different grocery chains.

Nevertheless, its personal grocery technique is a bit blended. Along with Complete Meals, which provides grocery pickup and supply in some places, Amazon continues to supply supply service by way of AmazonFresh and, in choose markets, Prime Now.

In the meantime, it’s concurrently invested in cashierless, grab-and-go comfort shops, underneath the Amazon Go model. For shoppers, which means there’s not one single level of entry for ordering groceries from Amazon, which may result in confusion.

Reached for remark in regards to the WSJ report, an Amazon spokesperson stated the corporate doesn’t touch upon rumors or hypothesis.

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