Amazon Enters the Grocery Business
As businesses faced the harsh realities of COVID, Amazon was subtly creating a national grocery chain — Amazon Fresh. Eleven Amazon Fresh grocery stores have opened their doors in the past eight months, and according to a report on Bloomberg, Amazon is working on opening at least 28 more stores.
The first Amazon fresh store opened in Los Angeles, followed by more store openings in Los Angeles and Chicago. Amazon said they plan on expanding their Fresh store locations to big cities like Philadelphia and Sacramento.
Amazon is betting its grocery stores will be a hit with loyal Amazon Prime members, shoppers who like to shop at stores with low prices like Walmart, and customers who want to order groceries online for pickup. Vice president of Amazon Fresh Jeff Hebling stated, “We know customers care about low prices, convenience, and great selection in their grocer, and we believe we offer that as well as a seamless online to in-store grocery shopping experience.”
Amazon Fresh stores use technology to enhance the customer’s experience, like digital price tags and smart carts that add up purchases. Also, the company is testing a cashier-less shopping system at an Amazon Fresh location in Illinois — customers can do their shopping and just walk out.
I’ve been to an Amazon grocery store in Chicago, and I must say the process was relatively seamless. I scanned my Amazon app to enter the store, picked my items and left.
Additionally, using technology to offer consumers a smooth online to in-store grocery shopping experience has never been more important as more consumers opt to order groceries online and pick them up when they’re ready.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.