Amazon confirmed to open a new grocery store in Los Angeles. It will totally be the new set of supermarkets or the start of the new chains. The store will be in the woodland hills community, opens by some time next year.
This new store won’t be like Whole Foods but a competition against Target and Walmart. The Whole Food grocery chain was bought by Amazon in 2017 for $13.7 billion.
Amazon company didn’t mention anything about the locations it would be open, pricing, and brand name. However, the company has cleared about the checkout process that CheckOut will not be via Amazon Go Technology. In that Technology, customers didn’t wait in line to checkout, instead, it will be conventional like other grocery stores.
Till now, the company has only finalized the one location in the roughly $800 billion US grocery market. And even after its Whole Foods deal, Amazon remains a small player and rival Walmart is the leader.
This is how opening a new grocery store will help Amazon:
It will help Amazon, the world’s largest online retailer in reinforcing customer loyalty. As people are habitual to shop at a local store every week, it will increase the revenue growth of the company.
Overall this work will offer new competition to Kroger, SuperValu, and many other supermarket chains.
The grocery business will offer razor-thin margins, Amazon to lower prices while still trying to bring in a profit.
When it comes to grocery shopping, we know customers love choice, that’s distinct from Whole Foods Market. It will continue to grow and remain the leader in quality natural and organic food said Amazon’s spokesperson.