Amazon plans to open dozens of grocery stores

Roman Schwartz
March 8, 2019

Amazon supermarkets aimed at mainstream customers could also compete directly with Amazon's competitors, such as Walmart and Target.

While the WSJ's sources claim the new, unnamed chain is not meant to cut into WFM's market, Amazon's decision to sign leases on at least three locations comes less than a week after it dropped the Whole Foods 365 concept. It is still unclear whether the new chain could run under Amazon's brand name, it said.

Amazon plans to open dozens of grocery stories with a lower price point than Whole Foods in several US cities starting in Los Angeles, sources tell The Wall Street Journal.

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The report said that the assortment of products at the new stores would differ from Whole Foods'.

WSJ says that Amazon plans to open dozens of new grocery stores that will be distinctly different from the company's Whole Foods Market stores and has reportedly already signed leases for some locations and plans to open the new grocery stores in cities across the country, including San Francisco, Seattle, Chicago, Philadelphia, and Washington DC. Walmart will have grocery pickup service at 3,100 stores by next January, and offer grocery deliveries from about 800 more stores by the end of the year, bringing the total number of stores offering delivery service to 1,600 stores. People familiar with the matter said past year that the company planned to open as many as 3,000 of the so-far small-format stores, including up to 50 in 2019. Amazon hasn't commented on plans for opening up a new chain of grocery stores just yet though. A second grocery chain would allow Amazon to carry a wider variety of edibles. The company has since started delivering groceries from the shelves of Whole Foods locations across the U.S. The system works, but Amazon uses it so far on smaller retail spaces.

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