Market Overview

Is Amazon Doubling Down On Groceries With Second Brand?

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Is Amazon Doubling Down On Groceries With Second Brand?

Amazon.com, Inc. (NASDAQ: AMZN) confirmed Monday it plans on opening a second brand of grocery stores.

What Happened

Amazon's new initiative was brought into the public light after the company published new job postings for a grocery store in Woodland Hills, California, according to CNET. A company spokesperson confirmed with the technology outlet the new grocery store will be different from Whole Foods and won't include the new Amazon Go technology.

Amazon's statement fell short of confirming if it will open just one location nor did it include any details related to product offering and pricing. However, the job posting states it's looking to hire workers for "Amazon's first grocery store," which implies it will not operate under the Whole Foods banner.

Why It's Important

Amazon could be looking at the $800 billion U.S. grocery market to boost its customer loyalty and generate revenue growth, according to CNET. Amazon could also operate two tiers of grocery stores with its Whole Foods brand occupying the organic and specialty categories and its new concept offering a more basic and mainstream grocery shopping experience.

Amazon told CNET it will continue investing in its grocery delivery business with Whole Foods as well as opening new physical locations. The new grocery store concept is expected to open next year.

Related Links:

Whole Foods CEO Says Grocer Launched Beyond Meat, Even Though It's 'Highly Processed'

Walmart Strikes Back In Grocery Battle With Unlimited Shipping Initiative

 

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Posted-In: Amazon Go CNET Grocery Whole FoodsNews Retail Sales Media Best of Benzinga

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