Amazon continues to open the line to the next line
e-commerce giant Amazon is still mad to the line to test.
According to foreign media reports, on Monday, US time, Amazon said that it plans to launch a brand new physical supermarket brand in California, which is an important measure of Amazon’s continued efforts.
A subsequent Amazon spokesperson responded to the report, acknowledging the plan – the new grocery supermarket is scheduled to open in the Woodland Hills community in Los Angeles in 2020. Before the media report, Amazon released a new recruitment announcement in the Woodland Hills community.
According to Amazon, this supermarket brand is different from the supermarket brand “Full Food Supermarket” that Amazon acquired before. Amazon is positioned as a grocery supermarket. In other words, the two supermarket brands will not create internal competition, and they are not targeting the same market.
The whole food supermarket is biased towards fresh retail and has a high positioning. Therefore, the quality and quality of the products are extremely strict and cannot meet the needs of all consumers. This is contrary to the goal of Amazon’s “Everythings Store”. The new grocery supermarket will allow Amazon to enter the US market with a larger share of groceries, while not disrupting Amazon’s layout in the fresh sector.
The new grocery supermarket will make up for the shortcomings of the Whole Foods Supermarket, Amazon Bookstore, and Amazon GO Unmanned Supermarkets, complementing Amazon’s offline categories, and may even use the “mini-warehouse” approach, referring to the way of rival Wal-Mart. Ordering, offline delivery, the last mile of logistics.
In the three quarterly reports of Amazon, Amazon spent billions of dollars on the “last two hours” of online store delivery services, and the results turned out to be disappointing to Wall Street analysts. The establishment of the new supermarket did not exceed the expectations of Wall Street analysts. When Amazon’s third quarterly report was just released, analysts believed that Amazon would set up a grocery supermarket similar to its competitor Wal-Mart in order to launch offline retail.
Amazon did not disclose the future expansion plan of this grocery supermarket, nor did it disclose the brand, pricing and so on of the grocery supermarket. But Amazon said it was Amazon’s first grocery supermarket, suggesting that it might continue to open stores.
In addition, the Amazon spokesperson also said that the new supermarket will not adopt the method of cashless payment, and still adopt manual settlement. This is very different from Amazon’s previously unmanned supermarket Amazon GO. According to some media speculation, the new supermarket is facing the mass grocery market, and indicates that it has plans to compete with Wal-Mart’s core business.
After all, the total size of the US grocery market is $800 billion. Everyone wants a piece of cake. Although according to the three quarterly reports, Amazon’s current profitable offline business is only a brand of Whole Foods, but Amazon’s investment in offline retailing has not decreased, but has become larger.