Amazon plans new grocery-store business - Strategy

Amazon to Launch New Physical Grocery Store Chain Business

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

The Journal reported that the first store would likely open in Los Angeles and that the retail giant has at least two more leases signed marked for grocery locations.

The new stores were not meant to compete directly with Whole Foods, according to the report. Stock prices of companies like Kroger, Costco, Sprouts, and Walmart, immediately reacted following the spread of the news. To better distinguish the new store from its siblings, it would reportedly carry grocery items customers can't get from Whole Foods. Additionally, the company is reportedly going to be opening most of its stores inside shopping centers based in countries such as Philadelphia, Chicago, Seattle, and Washington DC.

While this new move seems to be a bit of a head-scratcher, Forbes Contributing Author Neil Stern believes there are a few "prime" reasons for Amazon to pursue such a strategy - starting with the idea that the company could further expand its private brands. "This also gives Amazon the opportunity to use some subset of the technology employed in Amazon Go in a larger footprint box".

NASA Announces the First All-Female Spacewalk During Women’s History Month
Male astronauts Nick Hague and David Saint-Jacques will participate in the first and third spacewalks . NASA says spacewalks are conducted for repairs, testing equipment and conducting experiments.

Grocery stores are low-margin businesses, and any added pricing pressure from a new Amazon chain could eat into profits.

It is expected that Amazon is targeting new developments and occupied stores with leases ending soon. Part of the plan may be purchasing small, local grocery chains as well.

"Since Amazon's acquisition of Whole Foods, grocery retailers have waited to see if Amazon would launch its own branded stores and that day is finally arriving", Sylvain Perrier, CEO and president of the grocery e-commerce platform Mercatus, said in an emailed statement.

Related News:



Most liked

China closing in on deal that may end most U.S. tariffs
The report added that a trade deal signing could take place during a summit between President Trump and Xi at the end of March. Robert Lighthizer, who is the USA trade representative, has been speaking on behalf of the US against the officials in China.

All Charlotte Russe stores to close; liquidation sales starting immediately
According to the Wall Street Journal , the business was unable to find a buyer ahead of a deadline set by lenders. All purchases made in the liquidation sale are final and gift cards must be used by March 21.

Joe Jonas to tie the knot with Sophie Turner this summer
The duo first made public appearance together at the Ambani bash when Nick visited India to meet the family. Amazon Prime Video also tweeted a message from Kevin , Joe and Nick Jonas themselves.

Kelly Jailed Again, This Time for Unpaid Child Support
According to Kelly, he went to a bank on his own for the first time about a month ago. "Didn't know what the hell was going on". Kelly insisted he has done nothing wrong and said some of the women's parents have told him they would destroy his career.

Crew from aborted Soyuz capsule set for ISS mission next week
A Falcon 9 SpaceX rocket, ready for launch, sits on pad 39A at the Kennedy Space Center in Cape Canaveral, Fla., Friday, Marc. The three U.S., Canadian and Russian crew members aboard the space station watched the rendezvous via TV cameras.

Elon Musk Is Not Handling Tesla Well
A spokesperson said: "We are working closely with them to resume clearance procedures on these vehicles". But it will take around three years for such a vehicle to arrive, Musk said on Thursday.

Fort Worth church offers ashes to go near Starbucks
Every few minutes throughout the morning, we'd see a auto slowly approach the church from its tree-lined driveway. The ashes are placed on the forehead in the sign of the cross.

Teen tells Congress why he defied his mother to get vaccinated
The measles outbreaks aren't only causing concern in Washington, DC. "I grew up in an (anti-vaccination) household". Anti-vaccine proponents espouse a widely discredited view that vaccines can cause autism or brain damage.

Juan Guaido Prepares to Meet With Venezuelan State Workers
There was no investment and tens of thousands of employees had abandoned their positions in recent years, they said. Maduro retains control of state institutions and the loyalty of senior figures in the armed forces.

New Phillie Bryce Harper Sets Jersey Sales Records
But if you don't think I'm not gonna call Mike Trout in 2020 to have him come to Philly, you're insane . I don't think John's scared to go out and get the best guys that we need to have.

'Captain Marvel' star Brie Larson pushes for off-screen inclusion
Soy and Rios contrast Captain Marvel's enormous power with the world around her but render that power in different ways. The characters display recognisable humanity which is the film's balance but not often enough or convincingly.

Priyanka Chopra Jonas in talks to collaborate with Amazon Prime Video
Priyanka Chopra and Nick Jonas tied the knot on December 1 and 2 at the Taj Umaid Bhawan Palace in Jodhpur and both the Chopra's and the Jonas' family blessed the couple wholeheartedly.

Broncos agree to trade QB Case Keenum to Redskins
In that game, Keenum completed 58.3% of his passes for just one touchdown, two interceptions, and a 63.8 passer rating. Keenum signed a two-year, $36 million contract with the Broncos after his strong 2017 season with the Vikings .

Paul Manafort faces 1st sentencing for financial crimes
Speaking from his chair, Manafort did not apologize for his crimes, but thanked the judge for how he had conducted the trial. "Mr. Ellis told a court that Manafort "is not before the court for anything having to do with colluding with the Russian government".

Google releases fix for zero-day exploit in Chrome
You will be shown your current browser version and be alerted if you have an update pending. Also, seriously, update your Chrome installs... like right this minute.