It’s going to take a lot more than Whole Foods for Amazon to dominate the grocery business.
Amazon will reportedly accelerate its grocery push with new conventional supermarkets just two years after it bought Whole Foods for $13.7 billion.
The company plans to open dozens of its own grocery stores in major US cities separate from Whole Foods, its niche organic grocer, the Wall Street Journal reported on Friday. The stores will offer different, cheaper products than Whole Foods, including beauty and health items, according to the Journal. Amazon declined comment on the Journal article or its grocery plans.
The stores could help Amazon court shoppers that are not interested in Whole Foods organic fare. It will also give the company more pickup and delivery points to meet customer demand, help it gain data about shoppers, and introduce its expanded lineup of food and personal care brands, according to analysts.
“A more traditional grocery play would cover critical gaps” in Amazon’s current grocery model, said Danny Silverman, chief marketing officer at e-commerce data firm Edge by Ascential.