It looks like Amazon is considering 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 will apparently be completely separate from Amazon’s Whole Foods chain and its Amazon Go cashier-less convenience stores.
The Wall Street Journal reports that the company’s goal is to establish a better foothold in the conventional grocery market that’s largely dominated by companies like Walmart, Kroger, and Publix. It has already signed leases for locations in major cities like San Francisco, Seattle, and Chicago. Interestingly, that’s also where both Amazon Go and Whole Foods locations are present.
Amazon may even expand this grocery footprint by acquiring smaller grocery chains that have a dozen or so locations. We don’t know if the stores will have the Amazon name or if they will get a separate sub-brand.
The company may sell mainstream products through these stores that customers are unlikely to find at Whole Foods. Whole Foods is 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 just yet though.
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