- Amazon is opening a new grocery store in California next year that would be separate from Whole Foods, the company confirmed on Monday.
- The confirmation comes after The New York Times reported that Amazon is looking into creating a new grocery chain that would combine the aspects of online and traditional shopping.
- The new store opening next year will also be separate from Amazon Go, the company’s grab-and-go cashier-free convenience stores.
- Visit Business Insider’s homepage for more stories.
Amazon is making an even bigger leap into the grocery business by launching a new store next year in Woodland Hills, California, the company confirmed to Business Insider. CNET’s Ben Fox Rubin first reported the news on Monday after spotting a new job listing for a management role at the store.
Details on Amazon’s ambitions in the grocery space are scarce. But the new store opening in the Woodland Hills area of California would be separate from Whole Foods, which Amazon acquired for $13.7 billion in 2017.
Previous reports have shed light on Amazon’s plans to expand its presence in the grocery market beyond Whole Foods. Still, this is the first time the company has acknowledged that it plans to open a new type of store that’s separate from Whole Foods and its cashier-less Amazon Go stores.
The New York Times’ Karen Weise reported in July that Amazon was brainstorming a new type of grocery store that would combine traditional shopping with online pickup. Earlier this year, The Wall Street Journal also reported that Amazon was planning to open dozens of grocery stores in the United States, with the first store potentially opening in Los Angeles by the end of the year.
Here's a look at what we know about Amazon's grocery plans so far based on these reports.
The first store will launch next year, and others could soon follow.
Amazon's first new grocery store will open next year in Woodland Hills, California, although it's unclear precisely when it will debut. But it could be one of several Amazon grocery stores opening next year.
The Journal reported in March that the company is planning to open dozens of stores in several cities in the United States, noting that the first store would open in Los Angeles. This could very well be the Woodland Hills location Amazon has recently acknowledged.
The online retail giant has also reportedly signed leases for two separate locations, according to The Journal, and discussions are said to be in place for stores in Seattle, San Francisco, Chicago, Washington D.C., and Philadelphia.
The new grocery store won't be like Amazon Go, the company's cashier-less convenience stores.
The new grocery story opening in Woodland Hills next year won't be an Amazon Go location, which allows customers to purchase products through a smartphone app without having to pay at a checkout counter. This new store, rather, will have a conventional checkout experience.
Amazon's future grocery stores could combine in-store shopping with online ordering.
Amazon is considering building new grocery stores that would be centered on pickup and delivery, and would include a separate section where shoppers could pick out fresh groceries, according to The New York Times. The Journal also reported that Amazon's grocery stores would have a big focus on customer service and pickup orders.
Amazon did not reveal any details about the store opening in Woodland Hills next year, so it's unclear if that grocery store is the same as the ones referenced in reports from the Times and the Journal.
The Times report cites an Amazon memo circulated in early 2017, before it acquired Whole Foods, that outlines the company's vision for upending the grocery-shopping experience. The memo described a concept for a store that would allow shoppers to order nonperishable items through an app as they roamed aisles to pick out fresh groceries. These nonperishable items, which could include staples like paper towels and canned foods, would be brought down to the checkout area as the customer shops, and the supermarket would also have a designated area to pick up groceries ordered online.
It's unclear if the purported stores will adhere to that vision, but based on reports from the Times and the Journal it sounds like they may at least be inspired by it.
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A future Amazon grocery chain could be cheaper than Whole Foods.
One way Amazon may differentiate its own chain from Whole Foods is by offering a different selection of products at a lower price point, according to the Journal. But again, it's unclear if the new store opening next year is part of the grocery chain referenced in the Journal's report.
Amazon's reported stores might be smaller than traditional grocery markets.
Amazon's future grocery stores will likely be about 35,000 square feet, which is smaller than the average 60,000 square foot supermarket, according to The Journal.
Amazon may also sell items other than food.
Amazon has expressed interest in selling heath and beauty items at its new chain in addition to groceries, according to the Journal. However, Amazon has not said anything further about the new grocery store opening in Woodland Hills next year.