Amazon has introduced a new grocery store concept, Amazon Grocery, located next to a Whole Foods Market, as part of the company’s latest innovation in its grocery offerings. The new store, which opened in downtown Chicago, presents a distinct product lineup that differentiates it from Whole Foods, according to spokesperson Jessica Martin.
The store, occupying 3,800 square feet, stocks 3,500 items, including household brands and groceries that are not available in Whole Foods due to its strict ingredient standards. Whole Foods Market, known for its commitment to natural and organic foods, restricts the sale of products containing artificial sweeteners and color additives, among other ingredients. Amazon Grocery, on the other hand, offers a broader selection, including popular products like Coca-Cola and Tide Pods, which are not sold in Whole Foods.
“We’re testing and learning with a new grocery shopping experience with a small-format store from Amazon under the same roof as Whole Foods Market,” said Martin. This new store format represents Amazon’s efforts to experiment with different grocery models, integrating convenience with variety for urban shoppers.
Amazon Grocery is the latest example of the company’s shifting strategy within the grocery sector. Last week, Amazon announced the addition of an automated mini-warehouse in another Whole Foods location, which will also offer products not available in Whole Foods. This approach reflects Amazon’s goal to expand its reach by providing consumers with more shopping options.
Notably, the Amazon Grocery store does not include the “Just Walk Out” cashierless technology that has become synonymous with Amazon Go convenience stores. Earlier this year, Amazon removed the Just Walk Out technology from its Amazon Fresh grocery stores in the U.S. and recently closed three Amazon Go stores, signaling a recalibration in its technological experiments within its physical retail presence.
The new Amazon Grocery store signals a continued evolution in Amazon’s approach to the grocery market, offering an enhanced shopping experience for customers looking for variety beyond what Whole Foods traditionally offers. With this new concept, Amazon is likely to gain further insights into consumer preferences and continue to refine its grocery store formats.