Amazon to open new grocery store in Los Angeles next year
Amazon.com Inc. said Monday that it planned to open a new type of grocery store in Los Angeles next year, another step in the e-commerce giant’s multi-pronged effort to capture a larger piece of the massive U.S. grocery business.
When Amazon made that deal, it sent shock waves through the industry. After all, Amazon had revolutionized the sale of books, electronics and countless other consumer goods with low prices, easy ordering and fast delivery, and now it was taking aim at the grocery business. Amazon, the thinking went, was about to bring radical change to Americans’ food-buying habits using Whole Foods as a springboard.
Meanwhile, Amazon is “mining data, experience and knowledge about the grocery business” through Whole Foods and its other projects, said Juozas Kaziukenas, founder of the research firm Marketplace Pulse. “They’re trying to understand what you need to run a grocery supply chain and how to take that supply chain and, in particular, apply it to online grocery delivery.”
Now comes the new type of store in Woodland Hills. Analysts said that although Amazon, as usual, was keeping it strategic aims close to the vest, the company undoubtedly is learning how it can bring innovation to grocery shopping just as it did with other consumer goods.
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