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Amazon to open new, cheaper-than-Whole-Foods grocery stores




Photo: sergeyryzhov (iStock)

Amazon plans to open "dozens of grocery stores in several major US cities", with the first location in Los Angeles likely to open its doors by the end of the year, according to a Friday report from The Wall Street Journal . If there's a little question mark floating over your head and you're not sure why, it's because Amazon bought Whole Foods for $ 13.7 billion just two freakin years ago (per CNN ).

The only online web store is planning to open a chain that is separate from Whole Foods grocery store with the purpose of offering different products at lower prices. According to WSJ beauty and health articles will also be included in the stores. (Partial Foods?) But as CNN highlights several places of brick and mortar (so revolutionary!) "Will also give the company more pickup and delivery points to meet customer needs, help it get customer data , and introduce their extended range of food and personal care brands, according to analysts. "

If you are interested in grocery stores or machinations of monolith companies, both CNN and WSJ are worth reading. But to re-state because this is really wild: An advantage the company has in opening a new brick and mortar grocery chain is to help meet the delivery needs . Amazon needs physical grocery stores to meet the demand of online stores. Oh, and then it will sell more Prime memberships.

Amazon did not comment on the report WSJ .

It's a bit of an ouroboros situation, right? Online retailer becomes physical retailer to feed online store? CNN notes that the stores will be "geared towards retrieving as more Americans decide to buy their groceries online and pick them up in the stores," meaning. Still weird, though.

Anyway, it seems that other grocery chains are taking the news seriously. Per WSJ fell share prices on other grocery companies such as Kroger and Walmart, while Amazon shares rose 2 percent.



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