THE 2019 POWER 25 TOP BANNERS: WHOLE FOODS MARKET, AMAZON GO HQ: SEATTLE STORE COUNT: WHOLE FOODS: 502; AMAZON GO: 11
If the reports hold true, Amazon could open an entirely new physical grocery format this year. That would follow the introduction of the groundbreaking Amazon Go format a year ago and the earthshaking acquisition of Whole Foods Market the year before that. The message is the Seattle-based e-commerce giant, despite an explosive CAGR of nearly 50% in groceries over the past five years, is only getting started in physical food retail. “They will figure out what are the right formats for the right customers and the right geographies,” said Tom Furphy, a former Amazon executive and CEO of Consumer Equity Partners, in a prescient National Grocers Association address in February. “Don’t be shocked if you see more grocery format innovation out there.” The new format, which some referred to as Prime Grocery, would reportedly be about 35,000 square feet and have a different assortment of items than that of a Whole Foods. According to one report, “dozens” could open, including one in Los Angeles this year. Speculation is the stores would provide Amazon with a value format.
You May Also Like