Amazon (NASDAQ:AMZN), one of the world’s largest online stores, has been bad news for many brick-and-mortar businesses globally, as buyers have flocked to it for their purchases. It has sparked many others to open their online stores too, thus making the brick-and-mortar stores suffer even more.
Amazon, with a total 0revenue of $107 billion as of 2015, has a little bit of offline presence as well.
Amazon’s Grocery Business
Amazon.com, Inc. is now planning to beef up its offline presence by opening many new grocery stores for Amazon Fresh subscribers, according to a report that was published in The Wall Street Journal. A series of these stores might soon be seen across the United States, and in time, in other places around the world.
And to be frank, there have been rumors for some time now that Amazon is working to expand their grocery business for more than a year. The focus will be offline. Grocery delivery is very important for online shopping. A lot of businesses, such as Walmart (NYSE:WMT), Instacart and others are chasing it.
The business first started their grocery delivery service, Amazon Fresh in 2007. It was in direct competition with FreshDirect and Peapod. Customers could place their orders online, and it was then sent to their homes.
More Exclusive Offers for Amazon Prime Members
It would be exclusively for their Prime customers, though, for the time being at least. Also, the stores will be opened in only a few cities. The cost each month will be $15, which will be over the $99 that Prime members have to pay every year. Till recently, Amazon Fresh used to cost $299 every year, but the company rebranded it recently and reduced the price to $15 for their Prime customers.
It was learned that the business is also planning drive-in curbside locations, where their Fresh customers will be able to get their online deliveries.
This is, of course, not the first time that Amazon (NASDAQ:AMZN) is opening a physical store. They have quite a few brick-and-mortar retail outlets already, the first one having opened last year in Seattle, an Amazon bookstore. The business has plans of opening other physical bookstores soon in Portland and Chicago.
There is also speculation that Amazon Kindle and Echo brick-and-mortar stores might open soon too where consumers will be able to physically see the devices.
Amazon has, however, not confirmed that they are opening small physical grocery stores yet.