Amazon has decided to open its first grocery store in the LA area, as an attempt to compete with existing supermarket chains.
The online retail giant plans to have a segment dedicated to food retail but will try to distinguish itself from the organic supplier, Whole Foods. At the moment, Amazon has yet to confirm what the store will be named after, nor mentioned anything about whether it would build additional ones later on. This new grocery store is an example of Amazon’s desire to join the grocery business alongside retailers like Stop & Shop.
Despite Whole Foods having a smaller presence in Southern California, it has been issuing discounts on selected items, offered exclusively to Amazon Prime members, who have access to faster shipping of their orders. In the meantime, Amazon will be “data mining” to acquire information about the wholesale customer shopping experience.
Amazon’s market research should extend to online grocery delivery as well. Just two months ago, the Seattle-based company gave its Prime members the option to pick up online orders at Whole Foods. Amazon Go stepped in, by using camera sensors that link to the Amazon phone app, allowing customers to receive their hot food and beverages without waiting in line.
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