Sponsored By

Amazon reveals details of Pickup stores

Two Seattle outlets beta testing; offering will be free to Prime members

Jon Springer, Executive Editor

March 28, 2017

2 Min Read
Amazonfresh1000.jpg
Kevork Djansezian / Staff / Getty Images News

Amazon on Tuesday revealed details of its grocery click-and-collect sites in Seattle, saying the offering, to be branded AmazonFresh Pickup, would provide a full array of grocery and household items available for online ordering and pickup, free to its Prime members.

The sites, located in Seattle’s Sodo and Ballard neighborhoods, are currently open only to Amazon employees in a beta test. The company did not reveal additional locations for the concept, but Scott Mushkin, an analyst at Wolfe Research, said this week he expected the Seattle-based e-commerce giant to open as many as 30 such outlets this year.

The offering represents Amazon’s second stab into physical retail food sites in recent months: The Amazon Go convenience store, which opened in beta form in December, also in Seattle, utilizes technology allowing shoppers to select from stores shelves and carry out without stopping for checkout. That store, which officials had expected would open to the public as soon as this month, has postponed its public opening while the company addresses technical issues, the Wall Street Journal reported Monday.

In both cases, Amazon’s new food stores rely on the consumer to provide the “last mile” of delivery to their homes, overcoming a cost impediment that until now has made breaking into grocery problematic for “pure-play” e-commerce sites like Amazon. And though they would restrict shopping to Prime members, who pay $99 a year, the group represents an attractive demographic that likely comprises some of the best customers of existing food retailing competitors.

The offering allows shoppers to shop online and select a delivery time. Amazon said orders could be ready in as little as 15 minutes. Customers can pull in to any of several drive-up spaces at the store where employees will load groceries into their cars “within minutes,” the company said.

The company said the sites would offer “thousands” of grocery and household items including fresh meat, produce, bread and dairy, but declined to SN’s request to describe the SKU count in more detail.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News