The American e-commerce giant Amazon is reportedly planning to open up a new chain of grocery shops in a couple of cities of the United States of America. The new series of stores which the company intends to start will be altogether different from that of Whole Foods, a separate venture of the company in the retail food supply business. It has been reported that the company is willing to start its first store in the city of Los Angeles till the ending of the year 2019. The company is said to be signing several lease agreements for multiple properties for the undisclosed purposes; but sources say it may be for the same.
As a part of the plan, the company aims at acquiring a couple of retail grocery chains operating at the regional levels in those cities. This move will help the company at a rapid rate. The company has not yet revealed any details about the naming of the chain but it is likely that the stores will not have the Amazon branding. Starting a fully self owned chain of stores will allow the company to offer the products at significantly lower rates than the current competitors including the Whole Foods. One of the retail chains which the company intends to acquire is said to be having 12 stores in running condition.
This would offer a leading edge and would also help the company to begin at a greater pace. These stores of the company will offer the products at a lower rate along with less upscale goods which are usually offered by the Whole Foods. On the strategic front, the company will also be able to avoid cannibalization of the sales volume of the Whole foods. The company basically aims to cater to a different set of consumers altogether.