Why the Grocery Business Could Be a Big Part of Amazon's Future Growth
Amazon (NASDAQ: AMZN) is doubling down on the grocery business. This month, the company announced that it would be launching a new grocery chain, one that would be an alternative to its existing Whole Foods brand. The company is currently hiring for positions in Woodland Hills, California, but more cities could be added early next year -- reports indicate that Amazon has signed leases for two other locations.
While it may seem odd for Amazon to be launching a whole new brand of grocery stores, given that it has the popular Whole Foods brand in its portfolio already, it's a way for the company to reach different types of customers. Whole Foods has already established a brand over the years, and a new type of store gives Amazon the opportunity to start from scratch with a new logo and brand that could be more identifiable to its customers. It also allows the company to go in a different direction.
In a recent statement, Amazon said: "When it comes to grocery shopping, we know customers love choice, and this new store offers another grocery option that's distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food."
Source Fool.com
