Is Amazon Launching a New Grocery Chain?

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Is Amazon Launching a New Grocery Chain?

03/04/2019

Amazon plans to begin opening "dozens of grocery stores" in several major U.S. cities before the year's end, The Wall Street Journal has reported, citing people familiar with the matter.

The move would take the e-commerce bohemoth deeper into food retailing, as the WSJ notes the stores will be separate from the Whole Foods brand, which it acquired in August 2017. It's reported the company plans to open its first location in Los Angeles, CA, and it has signed leases for two more locations. 

The WSJ report also noted that Amazon is "exploring an acquisition strategy" to expand the new brand through purchasing smaller regional grocery chains that have approximately 12 stores. In addition, Amazon is in talks to open outlets in San Francisco, Seattle, Chicago, Washington, DC, and Philadelphia.

In December, the WSJ also reported Amazon was testing its Go cashierless technology in Seattle in larger spaces as it looks to potentially scale the technology for large-format locations.

For the full report from sister publication Progressive Grocer, click here.