Amazon is exploring a strategy of strengthening its new grocery store brand with the aid of purchasing regional grocery chains that function at least a dozen shops.
Amazon plans to open dozens of grocery shops throughout the United States because it appears to amplify within the commercial food enterprise, the Wall Street Journal reported on Friday, mentioning humans acquainted with the problem.
It stated Amazon is exploring a method of strengthening its new grocery store brand via buying regional grocery chains that function as a minimum a dozen shops.
Amazon, which offered the upscale Whole Foods chain for $13.7 billion in 2017, is now in talks to open grocery shops in purchasing centers in San Francisco, Seattle, Chicago, Washington, D.C., and Philadelphia. The new shops had been no longer intended to compete directly with Whole Foods, it said.
The online retail massive plans to open its first keep in Los Angeles as early because the give up of the year, and has already signed leases for at the least other grocery locations with openings deliberate for early subsequent 12 months, the file stated. Amazon declined to remark.
“We’re now not amazed,” stated David Bujnicki, in the rate of investor family members at Kimco Realty Corp, an owner or manager of 437 more often than not grocery-anchored purchasing centers.
Amazon is gradual but planned when rolling out new brick and mortar standards, he stated. He delivered that a brand new grocer would validate the want for physical stores, a business that has been hit tough through e-commerce, whose surge Amazon has led.
Amazon rival Walmart, the largest grocer inside the country, has no longer been caught off shield as it has been making ready for the competition to warmness up for nearly two years, according to a source with understanding of the enterprise’s commercial enterprise plans.
“Their (Amazon’s) ambitions in this area have been regarded for a long term,” the supply said.
The prospect of greater competition has spurred Walmart to motion, the supply stated. Walmart will have grocery pickup provider at 3, one hundred stores with the aid of next January, and offer grocery deliveries from about 800 greater shops using the end of the year, bringing the full quantity of shops presenting a delivery carrier to at least one, six hundred shops