It appears that Amazon is thinking about opening up a new grocery store chain. A new report claims that this chain will have dozens of locations in major cities across the United States. It’s also said to be completely separate from Amazon’s Whole Foods chain and its Amazon Go cashier-less convenience stores.
The Wall Street Journal reports that Amazon’s goal with this initiative is to establish a better foothold in the conventional grocery market that’s largely dominated by companies such as Walmart, Kroger, and Publix. The report mentions that it has already signed leases for locations in major cities such as San Francisco, Seattle, and Chicago. That’s also where both Amazon Go and Whole Foods locations are present.
Amazon may expand its grocery footprint by acquiring smaller grocery chains that have a dozen or so locations. What’s not clear right now is whether the stores in this new chain will bear the Amazon name or will they get a separate sub-brand.
The company may sell mainstream products through these stores that customers are unlikely to find at Whole Foods. The latter remains an organic-focused option that has higher prices which don’t make it competitive on the same level as a conventional grocery chain. Amazon hasn’t commented on plans for opening up a new chain of grocery stores.
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