There can be no question that Amazon is one of the most powerful companies in the world of retail sales. In fact, there are only three retail companies that are bigger. That having been said, Amazon is not content to stay where they are. They want to become a more prominent player in the grocery industry. Amazon knows there is a fortune to be made. They already bought the Whole Foods organic grocery store chain a couple of years ago. Those stores are doing very well. However, it was recently revealed that Amazon plans to open many grocery stores across the country that have lower prices than Whole Foods.
Amazon has been signing leases in several of the country’s largest cities. The first Amazon grocery stores will be located in Seattle, Chicago, Philadelphia and Los Angeles. Walmart and several of the other very large retail chains have been offering grocery delivery service. This was done to compete with Amazon’s grocery delivery service that it started in several cities a few years ago. Walmart accepts grocery orders online and can deliver the food on the same day. Needless to say, Amazon opening their own chain of grocery stores is very bad news for all of the other grocery stores that are trying so hard to compete with them.
Amazon wants to reach a much larger group of customers than the people who shop at Whole Foods. This is because there are many parts of the country where there are very few Whole Foods stores or none at all. There is also the issue of pricing. The organic foods that are sold at Whole Foods are much more expensive than the typical items that are sold at Walmart. Therefore, there are many people who do not shop at Whole Foods simply because it costs too much money. Amazon wants to attract the lower income people who shop at Walmart and other grocery store chains.
There is no time frame for the new Amazon grocery stores to open. There are rumors that they might start to open later this year. However, that is only speculation at this point. The company has not made any official announcements regarding the grocery stores. It has also not been revealed exactly how many of the stores there will be. It is possible that Amazon will open a dozen and see how they perform. If they do well, more stores will follow.