Amazon is piloting a new convenience store format in Chicago under the banner Amazon Grocery. There are four self-checkouts, but no Dash Cart’s nor Amazon’s Just- Walk-Out technology. Amazon Prime members can use the app to scan their products. The app then generates a QR code that the customer scans at a self-service terminal to pay using their Amazon account. An Amazon One Kiosk for palm vein recognition payments is also available to Prime members.
Even without biometrics, the system accesses the payment methods registered in the online shop. ‘My credit card information was already stored when I scanned my Prime QR code,’ reports Amanda Lai, Director Retail and Food Strategy at the Chicago-based consultancy McMillanDoolittle, who already visited the store.
Located on the site of a US Whole Foods store, but in a separate area, the store offers around 3,500 items in almost 360 square metres. The product range is designed to complement that of the organic supermarket. Customers will only find branded products that are not available in the neighbouring Whole Foods store. Amazon’s own brands are not available at all in the new store.
Branded goods addition to Whole Foods
In addition to packaged foods and products for everyday essentials, the store offers a coffee bar, chilled beverages, pre-made sandwiches and sushi, as well as fresh baked goods. This assortment is designed to save Whole Foods customers the trouble of having to visit other grocery stores. The new format also caters to shoppers who want to make a small, quick purchase.
In a prepared statement, Amazon responded to press inquiries: ‘Customers who shop at Whole Foods Market today are looking for natural and organic products. However, we know that many of them also visit other stores to buy their favourite national food brands or household items to complete their weekly shopping.’
Self-service returns centre
Another self-service system allows customers to drop off their returns from Amazon online purchases. The entire store is equipped with electronic shelf labels.
The launch of Amazon Grocery comes as the retailer continues to integrate its grocery business. Earlier this month, the company announced that the fulfilment centres of 26 Amazon Fresh stores will be able to supply customers with Whole Foods products. In addition, a first automated micro-fulfilment centre at a Whole Foods store in Plymouth Meeting, Pennsylvania, is equipped to deliver Amazon Fresh and online orders.
Similarly, the company is developing a programme that will link the Amazon, Amazon Fresh and Whole Foods online stores, allowing shoppers to place a single online order for goods from all three.
