Amazon.com Inc. (NASDAQ: AMZN) has announced plans for opening a new grocery store in Los Angeles some time next year. The new store will be located in the Woodland Hills community in a store reported to be a 35,000 square-foot former Toys R Us. The company has already published four new jobs postings for the location, described as “Amazon’s first grocery store.”
According to the announcement, the new grocery store would not be part of Whole Foods, the grocery chain Amazon bought for more than $13 billion in 2017. Whole Foods, largely known for its select foods and high prices, has over 500 stores and opened 17 locations this year. The company said in its statement, “This new store offers another grocery option that’s distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food.”
The new Amazon markets are expected to compete more directly with Walmart, Target, Kroger, and other supermarket chains. The company didn’t share any details on pricing or the specific products the new store would sell. Amazon hasn’t said whether the grocery would be a stand-alone or the start of a new chain. Its comments leave open the possibility that the company may open supermarkets in several cities.
The new grocery store line could let Amazon capture even more of the $750 billion grocery market. Amazon has previously introduced a new grocery concept dubbed Amazon Go to a handful of cities. The company’s Amazon Go technology allows customers to pick up food items, scan an app, then check out without waiting in line.
Amazon shoppers can also get groceries delivered through the company’s Amazon Fresh option. Last month, Amazon announced some members of its Prime service would be eligible for free food delivery from Amazon Fresh, as well as from Whole Foods.