Amazon is launching a new brand of grocery store in Los Angeles, California.
Amazon says this store is different from Whole Foods.
The company was tight lipped on the name, if there would be more locations and what the selection would be like.
This new store won't be like the Amazon ghost store, which allowed customers to check out without a line.
This unnamed store would be like regular grocery stores.
Ben, you broke this story, what do you know about this new brand of grocery store?
Apparently I know very little according to what you just let in on Well, okay, so the way to think about this is that Whole Foods is a higher end grocery store.
They do a really good job with organic, natural, specialty foods, but there's still a giant piece of the market that Amazon is just Not getting exposure to if you still want to go to a grocery store.
You don't do grocery delivery, which most people don't do.
There's only about like 3% of the market that actually does grocery delivery in the United States.
So, I guess Amazon decided we need to create our own brand, have it be separate than Whole Foods.
So Whole Foods kind of gets to remain this higher end thing.
Reverse Course in a whole another different way.
We're just gonna go all in on supermarkets now.
Yeah, so what's important to recognize about grocery is that it's an $800 billion market in the United States.
And Amazon's been growing still, even though it's humongous, at about 20% revenue growth.
Every single quarter so it really expects to keep that up.
It needs to get exposure to grocery.
It also needs to build more stores.
That's what analysts have been saying for years.
And it looks like maybe they're finally doing it but are people gonna actually switch mess with Whole Foods if they start adding in all kinds of lower end products or things that wouldn't be fitting of the Whole Foods brand, it would probably take off the market.
So create another brand which I still think somewhat confusing but I think in the long run might actually make sense.
And if they call it something really obvious like Amazon Fresh they already have one brand out in the market.
But buck They've only announced one store so far in Los Angeles.
That's a far cry from Walmart, which has almost 5000 stores in the United States like this is a long way for them to go.
But It's definitely something that's gonna get a lot of attention as they continue to expand it.
Compared to Walmart sounds horrifying, I'm just thinking like an Amazon superstore that sells Everything, everything, everything, you know.
It's a crazy idea but maybe they'll do that eventually who knows.
That sounds horrifying.
Can't get enough.
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