New Amazon Grocery Chain

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J-Man
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Re: New Amazon Grocery Chain

Post by J-Man »

I haven't actually been inside one of the stores yet, but I've done curbside pickup at their new North Hollywood (CA) store twice and I was very impressed with the service. Both times, my order was delivered less than 30 seconds after I arrived. Items were bagged and sealed according to category (chilled, frozen, other). They used insulation inside the brown paper bags for the perishables. They clearly have that process down to a science. The selection and prices are generally good (butter @$2.50/lb., for example.) Lots of Amazon (Happy Belly, Fresh, Solimo) and Whole Foods (365) brands. The deli meat I ordered was of good quality.

I live about half an hour away, but Amazon Fresh still doesn't deliver to my area. I don't know if I'd go all the way to North Hollywood (a good 25 miles/half hour drive away) on a regular basis given that I have other curbside options (Walmart, Target, Albertson's, Vons, Ralphs, Whole Foods) closer by, but since I drive so little these days, it was good to get the car out and go for a longer trip a couple of times.
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Re: New Amazon Grocery Chain

Post by klkla »

Amazon Fresh has 28 more stores in development:
https://www.supermarketnews.com/retail- ... ores-works

"Amazon reportedly has plans in place for more than two dozen new Amazon Fresh supermarkets, including locations outside the retail banner’s current two-state market area. Seattle-based Amazon is “quietly building a national grocery chain,” Bloomberg reported today, saying that at least 28 more Amazon Fresh stores are in the works “from Philadelphia to the Sacramento suburbs.” Currently, the online retail giant operates 11 Amazon Fresh supermarkets in California and Illinois plus a much smaller Amazon Fresh location in the United Kingdom that’s described as a “convenience grocery store.”

"An Amazon spokesperson said in an email late Thursday that the company “doesn’t comment on rumors or speculation.” However, the spokesperson confirmed upcoming Amazon Fresh stores in Long Beach, Calif.; Woodland Park and Paramus, N.J.; and Seattle and Bellevue, Wash."

I think that Long Beach store is the former Haggen location at Spring Street and Palo Verde Ave. They have been using it as an online fulfillment center since the pandemic begun.
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Re: New Amazon Grocery Chain

Post by storewanderer »

Also they still have Whole Foods Stores that are in planning.
https://www.wholefoodsmarket.com/compan ... evelopment

I will be curious if they flip some underperforming Whole Foods in less densely populated markets in the midwest/plains states to the Amazon Fresh brand.
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Re: New Amazon Grocery Chain

Post by pseudo3d »

klkla wrote: March 11th, 2021, 7:59 pm Amazon Fresh has 28 more stores in development:
https://www.supermarketnews.com/retail- ... ores-works

"Amazon reportedly has plans in place for more than two dozen new Amazon Fresh supermarkets, including locations outside the retail banner’s current two-state market area. Seattle-based Amazon is “quietly building a national grocery chain,” Bloomberg reported today, saying that at least 28 more Amazon Fresh stores are in the works “from Philadelphia to the Sacramento suburbs.” Currently, the online retail giant operates 11 Amazon Fresh supermarkets in California and Illinois plus a much smaller Amazon Fresh location in the United Kingdom that’s described as a “convenience grocery store.”

"An Amazon spokesperson said in an email late Thursday that the company “doesn’t comment on rumors or speculation.” However, the spokesperson confirmed upcoming Amazon Fresh stores in Long Beach, Calif.; Woodland Park and Paramus, N.J.; and Seattle and Bellevue, Wash."

I think that Long Beach store is the former Haggen location at Spring Street and Palo Verde Ave. They have been using it as an online fulfillment center since the pandemic begun.
Most grocery retailers never build scatter-shot like that, usually growing out of a small area and sprouting in new areas through acquisitions. I guess with Amazon and their huge distribution center, it doesn't matter, but they won't really gain market share that way. They bought that 15% share of SpartanNash, but I don't see what it has to offer Amazon except some military contracts and some of the smaller chains owned by SpartanNash (which basically act like independents, neither large or impressive).

Perhaps Amazon's move is to plant sites across the country and see what markets where they can go for the kill, or just write off and convert to Whole Foods or 365.
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Re: New Amazon Grocery Chain

Post by storewanderer »

The scattered geography is interesting but I do think they are generally speaking running on the back of Whole Foods for fresh items. Then Amazon has its own logistics network for various grocery items so getting cases of product to these locations may not be as tricky as it would appear for them. Then again we had posts here saying milk sold in CA had a TX plant code on it, so I may be wrong about that.

Not sure what they see in Nash Finish but maybe things will work out. Spartan wasn't a bad retailer; Nash was terrible. Nash Avanza hispanic concept was the worst I've seen. Since the merger it seems like the Spartan retail has gotten worse and more and more of the Nash retail has just closed outright. Hence the name Nash Finish.

But I do think it is finally happening now. What we have been hearing about for many years without seeing much to show for it, the prospect of Amazon getting into grocery in a big way, is actually finally happening. It may only be 28 stores now but who knows how many more are in development and how fast can they open these? They could easily open 100 stores a year and scale up quickly. It will be interesting to see what chains they go after first.

Also the unknown is how the Kroger Ocado will play into this.
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Re: New Amazon Grocery Chain

Post by pseudo3d »

storewanderer wrote: March 12th, 2021, 11:22 pm The scattered geography is interesting but I do think they are generally speaking running on the back of Whole Foods for fresh items. Then Amazon has its own logistics network for various grocery items so getting cases of product to these locations may not be as tricky as it would appear for them. Then again we had posts here saying milk sold in CA had a TX plant code on it, so I may be wrong about that.

Not sure what they see in Nash Finish but maybe things will work out. Spartan wasn't a bad retailer; Nash was terrible. Nash Avanza hispanic concept was the worst I've seen. Since the merger it seems like the Spartan retail has gotten worse and more and more of the Nash retail has just closed outright. Hence the name Nash Finish.

But I do think it is finally happening now. What we have been hearing about for many years without seeing much to show for it, the prospect of Amazon getting into grocery in a big way, is actually finally happening. It may only be 28 stores now but who knows how many more are in development and how fast can they open these? They could easily open 100 stores a year and scale up quickly. It will be interesting to see what chains they go after first.

Also the unknown is how the Kroger Ocado will play into this.
Amazon seems very proud of its name, and I can't see them going after chains as acquisitions, at least big ones. Albertsons and Kroger don't rebrand big local chains anymore, it would be foolish for Amazon to attempt it, and everything else is either very small and/or a ragtag group of independents that were jettisoned from real chains years ago.

It's all about what markets they can get into, being Amazon they don't have to do trial-and-error like other chains, it's to see who adopts it and who doesn't, and how flexible they can be. Some markets like the "bigger is better" approach and will sidle up to 85,000 square foot stores. Some don't. (Historically, the "NO" markets are Florida, California, and the West Coast, the "YES" markets are the Midwest and Texas). The question is if Amazon adapts, like if they choose a big format when they go into Texas markets, or if they just end up as a slightly larger 365 with a better merchandise mix.
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Re: New Amazon Grocery Chain

Post by J-Man »

Perhaps Amazon's move is to plant sites across the country and see what markets where they can go for the kill, or just write off and convert to Whole Foods or 365.
They killed the 365 stores a few years back and have converted most of them to regular Whole Foods. But given their smaller size, maybe they'd make more sense as Amazon Fresh conversions. The North Hollywood store was originally planned as a 365 store, but when the concept was discontinued, they built it as an Amazon Fresh.
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Re: New Amazon Grocery Chain

Post by storewanderer »

J-Man wrote: March 13th, 2021, 7:03 am
Perhaps Amazon's move is to plant sites across the country and see what markets where they can go for the kill, or just write off and convert to Whole Foods or 365.
They killed the 365 stores a few years back and have converted most of them to regular Whole Foods. But given their smaller size, maybe they'd make more sense as Amazon Fresh conversions. The North Hollywood store was originally planned as a 365 store, but when the concept was discontinued, they built it as an Amazon Fresh.
The South Lake Tahoe Whole Foods was supposed to open as a 365 but opened about 9 months late as a regular Whole Foods with no amenities. The selection of center store grocery items is quite good but the fresh departments are really lacking. The store seems to be struggling. It is busy-ish meaning probably 30 or so people inside when South Lake Tahoe is busy but a ghost town at other times (like only 5-10 customers inside during the day during the week). Meat and produce freshness could both be better. The employees are extremely friendly, but there aren't many of them as this is the lowest labor Whole Foods I've ever seen given it has no service counters. The South Lake Tahoe Safeway which seems to be operated much better now than it was a couple years ago routinely has hundreds of customers inside.
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Re: New Amazon Grocery Chain

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Now that I'm vaccinated, I decided to make the trip out to North Hollywood to check out the Amazon Fresh (from which I'd previously only done curbside pickup.) I went very early (7:30) on a Saturday morning. There were quite a few shoppers (although it was not crowded), and also at least five or six employees doing picking for store pickups. The parking garage was nearly empty; they seem to get a lot of foot traffic and people buying a few items. No one was using the "Dash" carts. And frankly, they make them somewhat challenging to use since they're not stored near the elevator entrance (from the underground parking) and you have to make an effort to go into the area where you can pick one up. There are two types of regular shopping carts that are more accessible.

The store was well-stocked, and had a good mix of "regular" items and the more upscale things you'd find at a Whole Foods. For example, in the refrigerated deli cases, there was a section labeled as "Charcuterie," with an interesting selection of meats, cheeses, olives, etc. Unlike Whole Foods, no special discounts for Prime members (other than the 5% cash back if you use the Chase-Amazon VISA card to pay.) They have a small display of atypical grocery store items (e.g., small appliances) and of Amazon products. Large locker area to pick up Amazon deliveries.

There were some decent regular and sale prices: Bananas @ .15; Amazon brand butter: $2.49/lb.; 12-packs of Coke products $3.98 (and unlike Vons/Albertsons/Ralphs, you don't have to buy four or five to get the sale price--or have a club card a coupon.)

I'd certainly shop there more often if I lived closer (or if they opened a store in my area). But I'd probably still go to my regular places (Aldi, Trader Joe's, Sprouts) more often.
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Re: New Amazon Grocery Chain

Post by storewanderer »

J-Man wrote: March 27th, 2021, 9:20 am
I'd certainly shop there more often if I lived closer (or if they opened a store in my area). But I'd probably still go to my regular places (Aldi, Trader Joe's, Sprouts) more often.
Thinking more of your shop make-up, if the Amazon Store was closer, which of those do you think would take the biggest loss from your shifting purchasing over to Amazon?

I am seeing Amazon as more of a commodity grocer at this point so I would tend to say Aldi there. But if they got better on specialty items and produce then I would say it would be a bigger threat to Sprouts. Trader Joe's... I am not sure.
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