Amazon has confirmed it will open a new grocery store next year in California, according to a report by CNET.
The company posted job listings for four new positions on Monday (Nov. 11) before confirming the news. Amazon said the new store will be different from Whole Foods and that it won’t use Amazon’s cashierless Go technology in favor of traditional checkout methods.
The company described the store, which will be in Woodland Hills, as “Amazon’s first grocery store.”
Additional details were scant; it’s not known whether Amazon is planning a chain, what type of items or pricing it will feature or what the store will be called.
This is not the company’s first foray into the delivery sector. Besides 500 Whole Foods locations, which Amazon purchased in 2017 for $13.2 billion, the company has a grocery delivery arm called Amazon Fresh, as well as Prime Now and Amazon Go.
According to The Wall Street Journal, Amazon is already looking into grocery stores in Philadelphia, Chicago and Los Angeles. The U.S. grocery market is worth about $800 billion in the U.S., with rival Walmart leading the space. Amazon’s entry into the grocery ecosphere could be an attempt to continue its expansion and maintain its 20 percent annual revenue growth.
Margins in the grocery business can be thin, and there isn’t a lot of room to grow revenue with such small space to lower prices. Amazon’s other startup businesses, like the cashierless Go and its bookstore, have yet to pull in large amounts of revenue. Amazon also recently shut down a line of mall kiosks that sold smart electronic gear and Amazon devices.
"When it comes to grocery shopping, we know customers love choice, and this new store offers another grocery option that's distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food," said an Amazon spokesperson, adding that more Whole Foods locations are forthcoming.