Silicon Valley Business Journal

Amazon Unveils Plan to Revolutionize Grocery Shopping

Jul 27, 2015  •  Post A Comment

A new initiative by online giant Amazon will dramatically change how consumers tackle one of the most persistent errands they face: buying groceries.

The Silicon Valley Business Journal reports that Amazon is developing a drive-up grocery store, with the first store expected to be built in Sunnyvale in Northern California.

“The e-commerce giant is developing a new drive-up store concept in Silicon Valley that will allow consumers to order grocery items online, then schedule a pickup at a dedicated facility, according to industry sources familiar with Amazon’s plans,” the story reports.

The article notes: “If confirmed, the project could signal a new distribution strategy for Amazon, the world’s biggest online retailer, while adding an additional threat to a grocery industry already in the throes of change.”

Bill Bishop, chief architect at retail and e-commerce consulting firm Brick Meets Click, said of the project: “We are seeing the emergence of the next generation of the food distribution system.”

The report adds: “For Amazon, a standalone drive-up store would signal a new phase in the company’s evolving grocery ambitions. AmazonFresh, Amazon’s same- and next-day grocery delivery service, has been expanding into major metropolitan areas in recent years. A physical pickup spot could help solve the ‘last mile’ problem of getting perishable goods to consumers by having consumers come to Amazon.”


One Comment

  1. This could have big impact on the Packaged Goods industry. They rely on shoppers who impulse buy based on specials and displays in store. Many of which are not advertised outside of the store. If this is successful for Amazon the ad dollars to provide these specials on Amazon could be a new expense for CPG industry, and could become expensive if it becomes a bidding war for prominent space on the website. How many cereal ads will consumers tolerate on the cereal website? Amazon could make more money on the bidding for this ad space, than they will off selling the groceries.

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