The reports that Amazon is pursuing a more aggressive entrance into brick-and-mortar grocery retail aren’t necessarily a huge surprise. Rather, it would be in line with the company’s growing investments in recent years in physical locations, including acquiring Whole Foods, launching Amazon Go convenience stores, and expanding package pick-up locations. Amazon grocery stores that don’t fall under the Whole Foods banner would likely reach a different consumer segment, broadening Amazon’s reach into the American grocery landscape.
Amazon’s forays into online grocery sales so far have yielded mixed results, and traditional grocery retailers like Kroger have significantly stepped up their own investments in e-commerce. If these reports are accurate and Amazon moves forwards with opening these additional stores, it would lend further credence to the idea that well-designed, well-located brick-and-mortar stores have an important role to play in the years ahead, even as e-commerce continues to grow.