US Markets

Amazon's latest grocery store concept opens, with high-tech carts

Credit: REUTERS/PASCAL ROSSIGNOL

Amazon.com Inc on Thursday said it is opening a supermarket in Los Angeles with shopping carts that let customers skip checkout lines, as the e-commerce company builds out its offline presence.

By Jeffrey Dastin

Aug 27 (Reuters) - Amazon.com Inc AMZN.O on Thursday said it is opening a supermarket in Los Angeles with shopping carts that let customers skip checkout lines, as the e-commerce company builds out its offline presence.

The market, in the Woodland Hills neighborhood, is called the Amazon Fresh grocery store. It is the first location to let customers in - by invitation only - out of seven that Amazon has confirmed for Southern California and greater Chicago. The Woodland Hills site will open to the wider public in coming weeks, Amazon said.

The world's largest online retailer has experimented with physical stores in recent years to capture more consumer spending, particularly in groceries. It has more than 20 cashier-less shops with grab-and-go food for office workers and over 500 stores in the Whole Foods Market chain it acquired in 2017.

Amazon's latest concept faces stiff competition from far larger incumbents Kroger Co KR.N and Albertsons Companies Inc ACI.N.

It is roughly the size of a Whole Foods store at 35,000 square feet (3,252 square meters) but serves a different need, not focused on natural and organic items, said Amazon Vice President Jeff Helbling.

"We feature a lot of national brands," he said in an interview. Prices are "lower than the other options that the people have in the Woodland Hills area."

The store will be the first with the "Amazon Dash Cart." This lets shoppers filling up to two grocery bags forgo the store's cashiers via technology systems that discern what they put in the cart and bill a credit card on file once customers leave through a designated lane.

The shop also has a counter for picking up and returning web orders, and stations for questioning Amazon's voice-controlled assistant Alexa about the store.

Amazon last month posted its biggest quarterly profit ever due to online sales during the coronavirus pandemic, but a 13% drop in physical store revenue.

(Reporting by Jeffrey Dastin in San Francisco; Editing by Christopher Cushing)

((Jeffrey.Dastin@thomsonreuters.com; +1 415 344 4914;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN KR ACI

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More