Amazon Tests Small-Format Grocery Concept in Chicago
Amazon has quietly opened a new type of grocery store in downtown Chicago. Called Amazon Grocery, the 3,800-square-foot store is a testing ground for Amazon's latest experiment in brick-and-mortar retail.
The first Amazon Grocery location shares a building with a Whole Foods Market, which Amazon purchased in 2017. But while Whole Foods is known for its natural and organic offerings, Amazon Grocery stocks major national brands and household essentials not found at Whole Foods.
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"We're always looking for ways to make it easier for customers to shop for groceries, whether online or in store," said Amazon spokesperson Jessica Martin. "With this new concept, customers can shop their favorite natural and organic products at Whole Foods Market and get a broader product assortment from Amazon all in one trip, saving them time and money."
Amazon Grocery features 3,500 products aimed at grocery "fill-ins", as well as grab-and-go meals, coffee, baked goods, and even a self-serve frozen yogurt machine. It's larger than Amazon's convenience store format, Amazon Go, but smaller than its grocery store concept, Amazon Fresh.
The pilot store comes on the heels of Whole Foods debuting its own small-format Daily Shop in New York City last month.
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"Customers can now shop their favorite natural and organic brands while also quickly topping up their groceries with a larger assortment of favorite national brands, grab-and-go meals, and household essentials—all in one trip," said Tony Hoggett, Amazon's senior vice president of worldwide grocery stores.
While Amazon said it has no expansion plans to share yet for Amazon Grocery, the concept highlights the company's continued push to redefine its grocery business. Over the past year, Amazon has expanded its Fresh grocery stores, launched new private label brands, debuted new subscription plans, and streamlined cross-channel shopping.
Since acquiring Whole Foods five years ago, Amazon has seen over 40% sales growth with the grocery chain.