Amazon already staked its claim with Whole Foods but is reportedly looking to build its own line of grocery stores.
In addition to Whole Foods, Amazon could be further entering the grocery space. By Rachel Siegel Rachel Siegel National business reporter Email Bio Follow March 1 at 4:53 PM Reports that Amazon is launching its own line of grocery stores raised eyebrows about how their debut could ricochet through America’s trillion-dollar grocery industry. Amazon owns Whole Foods, but that business revolves around higher-priced natural and organic groceries.
Amazon planted a flag in the grocery sector in 2017 when it bought Whole Foods for $13.7 billion. The deal gave the retail giant a foothold in brick-and-mortar stores nationwide, and expanded options for the company’s pickup and delivery programs. Amazon sells its Echo and other devices in Whole Foods stores, and Prime members can access discounts on some groceries and delivery services.
The Journal reported that the new Amazon grocery stores wouldn’t compete directly with Whole Foods stores, and that they would sell a wider selection of products. Amazon laid a foundation for its grocery strategy through Prime, Amazon Go stores and other grocery pick-up options. Then it bought Whole Foods and rose from 17th place in the U.S. food and beverage grocery market to sixth, according to Cowen. Amazon’s next act: a dual push in online grocery plus a wider brick-and-mortar fleet, Cowen’s analysts wrote at the time.
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