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Amazon to Launch New Grocery-Store Business
March 1, 2019 | WSJ | By Esther Fung and Heather Haddon.

Amazon is planning to open dozens of grocery stores in several major U.S. cities....as the retail giant looks to broaden its reach in the food business and touch more aspects of consumers’ lives......The new stores would be distinct from the company’s upscale Whole Foods Market chain. It isn’t clear whether the new stores would carry the Amazon name......Amazon in recent years has become increasingly focused on physical retail, posing a threat to traditional grocers. The new chain would help Amazon in fulfilling a yearslong initiative to build out a physical grocery presence, which was at one point potentially envisioned to reach more than 2,000 brick-and mortar stores in a variety of sizes and formats......Amazon is also exploring purchasing regional grocery chains with about a dozen stores under operation, one person said, that could bolster the new chain......Amazon’s further push into physical retail is its latest move far beyond its origins selling books and music on the web. Over the years it has become a cloud-computing giant, a major player in Hollywood entertainment and a burgeoning provider of logistics services. More recently it has emerged as a major competitor in digital advertising and launched forays in finance and health care......The new stores aren’t intended to compete directly with the more upscale Whole Foods stores and will offer a different variety of products, at a lower price point, these people said. Whole Foods doesn’t sell products with artificial flavors, colors, preservatives and sweeteners, among other quality standards.

Suppliers with big brands have hoped to have inroads into Whole Foods since Amazon bought the chain nearly two years ago. While Whole Foods has gradually expanded the big brands it carries—such as Honey-Nut Cheerios and Michelob beer—a conventional grocer can carry a much larger assortment of items. Amazon has had mixed results with its food-delivery business, and it wants to better understand how it can cater to grocery shoppers....Supermarket operators Walmart Inc., Kroger Co. and others are also trying to find ways to offer delivery and pickup to customers in a more cost-efficient manner...Amazon’s new grocery brand also comes as the retailer rolls out its cashierless Amazon Go stores in urban areas. It is testing that checkout technology for bigger retail stores. Meanwhile, Whole Foods is expanding its national footprint....For its new stores, Amazon is targeting new developments and occupied stores with leases ending soon.....Amazon doesn’t want restrictions on the type of goods it may sell at its stores and wants the ability to change the store and sell health and beauty products for instance......It is unclear whether these new stores will be cashierless, but they will be heavily tilted to customer service and pickup capabilities......a strategy where big retailers combine e-commerce with physical stores is the direction the industry is heading.
Amazon  BOPIS  bricks-and-mortar  cashierless  e-commerce  food  grocery  home-delivery  in-store  Kroger  new_businesses  physical_retail  rollouts  supermarkets  Wal-Mart  Whole_Foods 
march 2019 by jerryking
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