Amazon Plans New Grocery Chain

Amazon Plans New Grocery Chain

SEATTLE, WA - One of the preeminent promoters of e-tail continues to expand aggressively into brick-and-mortar grocery; according to the Wall Street Journal, Amazon has a new U.S. chain in the works, and the first outlet could make its debut as soon as this year.

According to the WSJ’s sources, this new grocery operation would be entirely separate from the Whole Foods Market brand acquired just over a year ago.

Amazon is reportedly now in talks to open grocery stores in shopping centers in a number of large metropolitan markets

One Amazon insider told the news source that the first grocery store is planned for Los Angeles at the end of this year, with leases already signed for at least two other grocery locations to open early in 2020. Sources shared with WSJ that rather than competing with its Whole Foods banner, the new stores will offer products at a lower price point, with a different variety of products than what is on the shelves at the more upscale Whole Foods Markets.

It’s unknown whether Amazon plans to acquire another grocer or launch its own grocery operation from scratch. And sources weren’t forthcoming about whether Amazon will attach its own name to the chain or offer a new banner entirely.

One of the largest pioneers of online retail continues to expand into brick-and-mortar grocery

The report did note that Amazon is now in talks to open grocery stores in shopping centers in a number of large metros like:

  • San Francisco, CA
  • Seattle, WA
  • Chicago, IL
  • Washington, DC
  • Philadelphia, PA

The (r)e-tailer is also exploring an acquisition strategy to widen the new supermarket brand by purchasing regional grocery chains with about a dozen stores under operation, one person told WSJ, and noted that though leases have already been signed, that doesn’t guarantee it will open the grocery stores.

Amazon has reportedly been targeting new developments and occupied stores with leases ending soon, with insiders explaining to WSJ that the company has asked for more flexibility in lease negotiations as it doesn’t want restrictions on the type of goods it may sell.

AndNowUKnow will continue to report with updates as they occur.