An Amazon grocery store? The Wall Street Journal reports that Amazon is opening grocery stores across the country, with the first location in Los Angeles by early next year.
Amazon’s new store does not have a name yet, but it will different from Whole Foods, which Amazon acquired for $13.7 billion.
Via Grocery Dive,
Since its marquee grocery acquisition, Amazon has pushed down prices at Whole Foods stores in an effort to net more customers. But refashioning a store commonly known as “Whole Paycheck,” at which analysts noted prices were typically 15% higher than the competition, has proven difficult. Although Prime members get some special savings and more conventional brands have appeared in the aisles, reports have noted little to no change in the retailer’s average basket prices. Last month, The Wall Street Journal reported that Whole Foods prices are actually starting to creep up as suppliers battle inflation and other headwinds.
As a result, Amazon could be developing new options for consumers to reach a larger audience outside of the Whole Foods market. It is possible that Amazon’s new store could position themselves alongside discount stores like Aldi and Lidi, but it the branding is unclear at the moment.
Amazon’s purchase of Whole Foods has not affected the bottom line for grocers, but this new chain may do the trick.