A new Amazon grocery store chain is coming

Wall Street Journal has the scoop on an Amazon plan to launch “dozens” of grocery stores across the US:

The company plans to open its first grocery store in Los Angeles as early as the end of the year, one person said. Amazon has already signed leases for at least two other grocery locations with openings planned for early next year, this person said.

The new stores would be distinct from the company’s upscale Whole Foods Market brand, though it is unclear whether the new grocery chain would carry the Amazon name.

Amazon is also exploring an acquisition strategy to widen the new supermarket brand by purchasing regional grocery chains with about a dozen stores under operation, one person said.

From this we can take that the stores will be bigger than the checkout free Amazon Go (though maybe including some of the same tech?). I read “distinct from Whole Foods” as meaning… cheaper.

Americans, as any smug Brit will tell you, have a simply diabolical selection of good food at reasonable prices when compared to the landscape in the UK.

This is absolutely ripe for disruption, whether it’s in turning every 7-Eleven into something more akin to Tesco Express, or launching a grocery chain that offers good food – like Sainsbury’s – that isn’t fancy food, like Whole Foods.

Looks like Amazon is considering the latter. Smart move, though I wonder if the FTC might soon have some thoughts on Amazon’s increasing grip on the supermarket industry.