Amazon has been quietly expanding its grocery operations during the pandemic.
EXPANSION IN THE U.S. AND ABROAD
Amazon has opened 11 Amazon Fresh stores around the U.S., with plans for at least 28 more, as it tries to lure mainstream shoppers, reported Bloomberg (March 11). Locations range from Philadelphia to the Sacramento suburbs.
Amazon is also testing the “Just Walk Out” cashier-less shopping technology created for its Go convenience stores at an Amazon Fresh location in Illinois.
Amazon is taking the concept abroad to its recently-opened checkout-free store in Britain. The London-based store allows customers to walk in, pick up what they want and walk out without having to pay at a cash register. It uses the same technology pioneered by Amazon Go stores in the U.S.
AMAZON FRESH VS. WHOLE FOODS
Amazon Fresh is different to Whole Foods Market which Amazon acquired in 2017. The main differences between Amazon Fresh and Whole Foods are the type of groceries they offer and the price points, according to Shop Food. Amazon Fresh offers a wide selection of national brands, private label, and store-made products at a low price, whereas Whole Foods offers organic products at a higher price point.
The stores also target different consumer segments. Whole Foods sells natural, organic, and clean foods serving health-conscious consumers, while Amazon Fresh focuses more on everyday grocery items with a wide assortment.
Having both store concepts allows Amazon to reach a broader range of customers.