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         Amazon Expands US Grocery Footprint

         Amazon moves ahead on grocery plan

         What Amazonís Plans To Open A Chain Of Grocery Stores Mean



Amazon Expands US Grocery Footprint



October 2, 2019


Online retail giant Amazon has announced that it is going to open grocery stores all across the United States, starting with neighborhoods in Los Angeles, Philadelphia and Chicago, according to a report by The Wall Street Journal.


The company has signed over a dozen leases in L.A., and the first couple of stores are going to be located in Woodland Hills and Studio City. There will be another in Irvine in Orange County.


Amazon is planning on opening stores in cities all across the country as it continues to push physical locations in a continued quest for expansion.


The stores could open as soon as the end of the year, and itís not known whether theyíll be employing Amazonís cashless Go technology. The stores will sell prepared foods and have kitchen space, as well as more mainstream run-of-the-mill groceries such as soda and Oreos. They wonít be in direct competition with Amazonís Whole Foods brand, which is more health oriented.


Amazon has been steadily expanding its brick-and-mortar offerings ó it now has 16 Amazon Go stores, four Amazon 4-star stores (which carry 4-star items) and 18 Amazon Books stores.


The companyís revenue from these physical locations isnít significant yet, but it is growing. Sales from actual stores went up 1 percent to $4.3 billion from a year before. Only sales that happen in the store, and not those that are done online and picked up, count toward that number.


The company was recently granted permission...





Amazon moves ahead on grocery plan


Blue Book Services

October 2, 2019


Amazon BB #:283186 plans to open a handful of grocery stores in the U.S. as early as later this year.


The Wall Street Journal reported the online retailer plans to open stores in Los Angeles, Chicago and Philadelphia and has already signed more than a dozen leases.


Sources told the Journal the stores will stock mainstream groceries in addition to prepared foods. It does not intend for the stores to compete with the 16 existing Amazon Go stores or its Whole Foods Markets BB #:147784.


Amazon didnít respond to questions on...


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What Amazonís Plans To Open A Chain Of Grocery Stores Mean


Lana Bandoim, Contributor, Forbes

Oct 2, 2019


Amazon is moving forward with plans to open a chain of grocery stores in the United States. The company signed multiple leases in Los Angeles, according to the Wall Street Journal. It may also open grocery stores in Chicago, Philadelphia and other parts of the country. Michelle Engle, senior vice president of marketing at Valassis, shared what this means in an interview.


Reasons for Amazon's Expansion


Engle believes it makes sense for Amazon to expand into physical stores because consumers still shop online and offline. Many purchases, particularly in the grocery category, occur offline. Operating brick-and-mortar stores gives Amazon the ability to collect more information about its customers and could create another avenue for Amazon to grow its Prime memberships.


"By operating physical and online experiences, Amazon is able to engage with consumers in new ways and, importantly, gather even more insight into their customers. Data is a competitive advantage and offering brick-and-mortar and online experiences let Amazon better understand its consumers," Engle said.


There are also different expectations specific to grocery consumers that this expansion addresses. According to Valassis research, 64% of online grocery consumers miss touching and smelling produce, and 62% of consumers are not comfortable having someone else choose their produce.


"It is natural that driving in-store traffic for Amazon will influence online shoppers to try items in-store and potentially purchase them. By expanding their brick-and-mortar format, Amazon may also tackle some of the online challenges above while appealing to new shoppers and existing online consumers," Engle added.


Amazon is expanding on various experiments it already has with brick-and-mortar stores, including returns at Kohlís and pick up and returns at Whole Foods. This is part of the strategy to blur the lines between online and offline shopping, so they can reach consumers across all types of purchase needs, such as planned purchases and real-time, need-it-now impulse buys.


Whole Foods vs. New Stores† ...


Grocery Store Changes ...†


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