The New Amazon Grocery Store – Coming to a Corner Near You?

Amazon has announced that it will be building a series of physical, brick-and-mortar convenience stores. The new Amazon grocery stores will be competing with your corner store and gas station convenience store for your purchases of perishables such as milk, meat, eggs, and produce. Amazon also plans a series of drive-up convenience stores, so that you can order food and other products online, and then have same-day delivery curbside to your car.

In fact, the plans, dubbed ‘Project Como’ by Amazon according to the Wall Street Journal, eventually include license plate reading recognition technology to make the drive-up aspect faster and even more convenient.

With lots of same-day food delivery services failing to pan out, and with the unquestionable overhead of physical retail locations, why would Amazon head in this direction?

 

Well, as the MIT Technology Review points out, in an article entitled Amazon Wants to Disrupt the Bodega, this is not the first time that Amazon has crushed its real-world, brick-and-mortar competitors, only to then open its own stores. Take bookstores – which Amazon did. Countless mom-and-pop book shops folded in large part owing to the online juggernaut that is Amazon. Then Amazon went and opened its own physical book stores.

Similarly, Amazon has launched its AmazonFresh (tagline “Amazon’s new fresh produce & grocery service with delivery to your door”) and Amazon Prime Pantry services in direct competition with brick-and-mortar grocery and convenience stores.

Read Internet Patrol Articles Right in Your Inbox as Soon as They are Published! Only $1 a Month!
Imagine being able to read full articles right in your email, or on your phone, without ever having to click through to the website unless you want to! Just $1 a month and you can cancel at any time!
Or get notified of new Internet Patrol articles for free!

Predictably, not everybody is excited about this development, most notably owners of and others invested in corner convenience stores. In particular, notes Dave Robinson of Robinson Oil (which operates Rotten Robbie gas stations and convenience stores) in the publication Convenience Store News, “It’s a tight enough industry {already}, a tight enough market.”

Adds David Lewis, of the U.S. Marine Corps Base Exchange, “Amazon is a challenge for everybody because people can sit at their home with their feet up and order whatever they want. It’s a challenge and we have to find our inroads to beating them; to make it convenient for the convenience store at your home. It is a threat — it is a threat for everybody. It was a threat last Black Friday for the big-box stores, and it’s going to be a threat for the convenience stores going forward.”

The average American family spends about $5,500 a year on groceries, and, says the Wall Street Journal, while that represents about 20% of consumer spending, online grocery sales account for only about 2% of U.S. grocery sales.

So certainly one reason for Amazon’s move to in-person grocery sales may be to capture more of that 20% of spending.

But the MIT Technology Review points out another, and perhaps even primary, motive for Amazon. More big data.

Says Technology Review’s author, Michael Reilly, “Its plans for alimentary domination are a way to get people into its stores, record their buying habits, and keep them coming back for food and more profitable items.”

And that may be tough for some consumers to swallow.

 

So how about you? Will you shop at an Amazon convenience store if one crops up near you? And would that depend on whether it replaced another local shop?

No Paywall Here!
The Internet Patrol is and always has been free. We don't hide our articles behind a paywall, or restrict the number of articles you can read in a month if you don't give us money. That said, it does cost us money to run the site, so if something you read here was helpful or useful, won't you consider donating something to help keep the Internet Patrol free? Thank you!

Get notified of new Internet Patrol articles!
People also searched for Amazon food store pictures, do you think the amazon go store is a model of what all grocery stores will eventually look like? why or why not?
Summary
The New Amazon Grocery Store - Coming to a Corner Near You?
Article Name
The New Amazon Grocery Store - Coming to a Corner Near You?
Description
Amazon has announced that it will be building a series of physical, brick-and-mortar convenience stores. The new Amazon grocery stores will be competing with your corner store and gas station convenience store for your purchases of perishables such as milk, meat, eggs, and produce. Amazon also plans a series of drive-up convenience stores, so that you can order food and other products online, and then have same-day delivery curbside to your car.
Author

One Reply to “The New Amazon Grocery Store – Coming to a Corner Near You?”

Leave a Reply

Your email address will not be published. Required fields are marked *