Amazon's grocery gamble
The Wall Street Journal reported that Amazon is planning to open a chain of grocery stores across major US cities. Since its US$13.7B acquisition of Whole Foods, Amazon has expanded several supermarket services, adding Prime discounts and delivery at Whole Foods and launching a line of cashierless Amazon Go stores. But this new expansion is by far Amazon’s biggest grocery gamble. Amazon plans to launch its first grocery store in Los Angeles this year, with locations in San Francisco, Seattle, Chicago, Washington, D.C., and Philadelphia to follow. Unlike Whole Foods (AKA ‘Whole Paycheck’), these new stores will offer low prices and a wider variety of different brands and products, positioning Amazon to compete with other grocery chains. Amazon also plans to expand its network of Whole Foods stores and has said that it hasn’t ruled out the option of buying smaller, regional grocery chains, either.