Competitors' Shares Tumble On Report Amazon To Open New Grocery Chain

Zero Hedge | 3/1/2019 | Staff
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In the latest confirmation that Jeff Bezos will settle at nothing less than total domination of the grocery business, the Wall Street Journal reported on Friday that Amazon is planning to open a new chain of low-cost supermarkets in several major US cities. With potentially dozens of new stores, the chain would co-exist with Amazon-owned Whole Foods by offering a broader assortment of products at a lower price point, while Amazon's growing cashierless 'Amazon Go' chain will focus on a smaller suit of offerings similar to US convenience stores.

If accurate, the report would suggest that Amazon plans to continue its conquest of the grocery space by growing organically (though it might acquire a few regional grocery chains along the way, per WSJ), which helped send shares of Wal-Mart, Kroger and Target to session lows on the news.

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The first store in this new chain could open in LA by the end of the year, WSJ reported. Meanwhile, Amazon is also in talks to open grocery stores in shopping centers in San Francisco, Seattle, Chicago, Washington, DC, and Philadelphia, and has already signed leases in some locations.

Amazon's growing focus on retail comes as the company has had mixed results with its grocery delivery business, and has decided that it would be better served by expanding its retail offerings. Meanwhile, Amazon is also planning to grow its Amazon Go offerings, with 10 stores already open.

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