When Amazon acquired Whole Foods back in 2017, the grocery industry shuddered at the prospect of the world's most valuable company coming to swallow it whole. And sure, the behemoth e-tailer has made a few changes to the popular upscale supermarket, but Whole Foods has remained largely the same. However, Amazon now appears to now have its sights set on even bigger and better things in the grocery store sphere, because it's reportedly getting ready to launch an entirely new chain of supermarkets.
Amazon is getting ready to open an entirely new grocery store chain, distinct from Whole Foods, that will offer a wider selection of goods at cheaper prices, according to a new Wall Street Journal report. The company has reportedly signed leases for three of the forthcoming locations, including in Los Angeles, where one could be open as soon as this year. Dozens more will also likely open later in places like San Francisco, Seattle, Chicago, Washington, DC, and Philadelphia.
There are scant details about how exactly these stores will differ from Whole Foods, though those familiar with the plans say they'll likely be smaller (roughly 35,000 square feet), and sell a wider variety of food beyond the more upscale and organic fare you find in WF aisles. Essentially, they're aiming to appeal to customers who shop at more traditional grocery stores. There's no word on what the new chain will be called, or if it'll even have Amazon in the name.
In keeping with its famously tight-lipped approach to rumors, Amazon has not commented on the report, which came out just days after news broke that Whole Foods is killing off its 365 stores. However, the WSJ says that the company may also be interested in acquiring other grocery chains to help bolster its position.
Unsurprisingly, Walmart, Kroger, Target, BJs, and Costco stocks all dipped sharply following the WSJ article's publication, according to CNBC.
Thus concludes your daily update from the ever-expanding Amazon-verse.