Inside Amazon’s first Amazon Fresh grocery store in Los Angeles.
Amazon is opening its first grocery stores on the East Coast, the company confirmed Thursday, in the latest sign of its efforts to shake up traditional supermarkets.
The company plans to open two grocery stores. One will be located in the Logan Circle neighborhood of Washington, DC and another will be built in the city of Franconia, in northern Virginia, not far from Amazon’s second headquarters, nicknamed HQ2, in the Crystal City section of Arlington.
The DC and Northern Virginia stores could be the first of several Fresh stores to land on the East Coast. More grocery stores appear to be planned for the Philadelphia suburb of Warrington, Pa., And Chevy Chase, Md., According to Jobs on the Amazon website.
It’s unclear whether stores will mirror the format of Amazon’s recently launched Fresh grocery chain, or when stores are expected to open. Amazon representatives did not immediately respond to a request for comment.
Last September, Amazon open his first fresh grocery store in the Woodland Hills neighborhood of Los Angeles. He has since open a handful of other locations in Southern California and several Chicago suburbs.
Amazon’s Fresh stores look like a traditional supermarket, but also have high-tech touches, like Smart Dash Carts that allow buyers to skip the payment line and voice activated Echo Show screens. However, unlike Amazon-owned Whole Foods, Fresh stores are intended to attract a wider range of shoppers, offering products at lower prices than the high-end grocer, as well as traditional staples. , especially Coca Cola drinks and Kellogg’s cereal. There is also a dedicated shop area for buyers to pick up and return Prime packages.
Amazon now has 11 Fresh stores in operation and more may be on the way. Last month, Bloomberg identified at least 28 additional new locations in preparation. The company is also testing its “Just Walk Out” cashless technology at a Fresh store in Illinois, according to Bloomberg.
Since acquiring Whole Foods for $ 13.7 billion in 2017, Amazon has broadened its ambitions to break through the $ 900 billion U.S. grocery industry, raising fears of people like Walmart, Kroger and Albertsons. In addition to Fresh stores, Amazon also operates a number of cashier-less Go and Go Grocery convenience stores.
With its Fresh stores, Amazon appears to be targeting “a middle-income customer who can already shop at conventional discounters and grocers,” Morgan Stanley analysts said Tuesday. Morgan Stanley said Fresh stores don’t offer “anything too special” compared to typical supermarkets, but their real value may be as close “knots of achievement” to consumers.
“As consumers increasingly demand same-day processing of groceries (both for delivery and in-store pickup), therefore, Fresh stores could fill a previously missing hole in the grocery processing process. AMZN grocery products while strengthening the AMZN brand in food retail, ”the analysts wrote.