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Amazon’s Latest Foray into the Brick-and-Mortar Space


Mar. 5 2019, Published 3:32 p.m. ET

Amazon is reportedly looking to launch a new chain of grocery stores

Amazon (AMZN) is working on opening a new chain of grocery store across the United States, which would be separate from its Whole Foods chain, according to a report by the Wall Street Journal.

The e-commerce giant has been slowly increasing its brick-and-mortar presence since its acquisition of Whole Foods for $13.7 billion in 2017. The company has also been investing in its futuristic cashierless Amazon Go stores, with ten locations in the United States.

The report claims Amazon will launch its first grocery store in Los Angeles by the end of this year, with the tech giant already having signed leases for two more stores slated to open next year. Amazon plans to open stores in Seattle, San Francisco, Philadelphia, and Washington, D.C.

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Amazon’s new chain wouldn’t compete directly with Whole Foods

The report said that the assortment of products at the new stores would differ from Whole Foods’. The Wall Street Journal pointed out that the new chain isn’t intended to compete directly with Whole Foods since it’s expected to sell cheaper products.

Amazon has tried to deepen its already robust ecosystem by linking its Prime membership with Whole Foods. Prime members can access discounts at the organic grocery store among other benefits. The company might also offer deals to Prime members at the new stores.

Amazon’s stock rose nearly 2% on Friday, March 1, when the report was released.


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