Amazon plans to launch new supermarket brand

Amazon.com plans to launch a new supermarket brand distinct from Whole Foods Market that the company acquired two years ago, a sign of the retail giant's hunger for a slice of the food market as well as high quality organic foods.

The company has published four job listings for "Amazon's first supermarket" in Los Angeles's Woodland Hills neighborhood. An Amazon spokeswoman confirmed the listings and said the store would open on 2020. The brand will be different from Whole Foods and will have a conventional checkout line, unlike the boxless Amazon Go convenience store. Amazon's plans for the store were previously released by CNET.

The e-commerce company bought Whole Foods in a bustling $ 13,7 billion business two years ago, but has not yet made much progress in the $ 900 supermarket sector.

The Whole Foods brand, scrutinizing what is allowed on store shelves based on its healthy image, conflicts with Amazon's desire to give customers what they want.

Amazon rival Walmart Inc., which captures about 25% of all US grocery spending, sells items like Pepsi and Cheetos that buyers don't find at Whole Foods. Supermarket analysts speculated that Amazon could open a new store where these products would not be seen as betrayal of the brand.

Online grocery shoppers prefer in-store pickup options to home delivery by almost a margin of 2 to 1, and Amazon needs more stores to meet this growing demand, said David Bishop, partner of research firm Brick Meets Click. . In-store collection requires more stores closer to shoppers - about 10 miles from their homes - than shopping delivery services, he said.

"The reason Amazon needs to expand its physical presence is an accelerated demand for goods collection services rather than delivery," he said. "Shoppers have a greater sense of control when buying their in-store purchases in a safe place rather than worrying about being left at home."

Amazon's physical store sales, the vast majority of which are purchases at Whole Foods stores, fell 1,3% from a year earlier to $ 4,19 billion in the third quarter. Amazon said the total does not include online sales of Whole Foods, but the Seattle-based company does not disclose that number.

Source: Bloomberg

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