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Amazon opens its 1st online-only Whole Foods: Ghost Grocery is coming

Snacks / Wednesday, September 02, 2020

They never have free samples anyway... Just one day after Walmart unveiled its Amazon Prime competitor Walmart+, Amazon is one-upping its grocery rival (claaaassic Bezos). On Tuesday, the Zon will open its 1st online-only Whole Foods store in Brooklyn. It's basically a Whole Foods that you're not allowed in (no Nuts & Seeds section "browsing"). It'll only be used by Amazon employees to fulfill e-grocery orders in the area.

  • Amazon operates over 500 Whole Foods, offering online grocery delivery from its stores.
  • Amazon's online grocery sales tripled last quarter, because, quarantine.

Getting some bang for its billions... Amazon acquired Whole Foods in 2017 for nearly $14B to sow its grocery oats. That acquisition has lettuce down. Amazon hasn't done much with it besides giving Prime members free grocery delivery and 10% off sale items. But this "Ghost Grocery" warehouse concept could speed up deliveries and ensure that the maple almond butter you want is in stock — instead of asking if you want PB, instead.

This could be Amazon’s big grocery advantage... over Instacart, Walmart, and DoorDash. E-grocery shoppers have to go into stores just like you and us to pick out your goodies before delivering them — that's not very efficient.

  • Speed: All that pushing between shopping carts, little kids, and cheese-gawkers slows the process down. That doesn't happen in a Ghost Grocery.
  • Reliability: In regular stores, there's a decent likelihood that the pesto you ordered is gone. In Ghost Groceries, supplies are closely monitored (and no one storms the pasta aisle).
  • Price: This more efficient fulfillment method could allow Amazon to lower prices or rake in more profit.

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