Amazon.com Inc announced that it is opening a supermarket in Los Angeles with shopping carts that enable customers to skip the checkout lines, as the leading e-commerce firm builds its offline presence.
The Woodland Hills neighborhood market is called as the Amazon Fresh grocery store. Out of the seven locations that Amazon has confirmed in greater Chicago and Southern California, this is the first location to let customers in the store, by invitation only. Amazon confirmed that the Woodland Hills store will open to a wider public in the coming weeks.
In recent years, Amazon has experimented with physical stores to apprehend more consumer spending, mainly in groceries. The e-commerce giant has over 20 cashier-less stores with pick-and-go food for office workers. It has more than 500 stores in the Whole Foods Market chain that it acquired in 2017.
Amazon's new idea faces close competition from larger opponents Kroger Co and Albertsons Companies Inc. Amazon Vice President, Jeff Helbling confirmed that it is nearly the size of a Whole Foods store at 3,252 square meters but serves different requirement and is not focused on organic and natural items. He further stated that the store stocks various national brands and the prices are comparatively lower than the other stores in the Woodland Hills area.
The Woodland Hills store will be the first one with the ‘Amazon Dash Cart’. This will help customers to fill up to 2 grocery bags and skip the store’s cashier through technology systems that distinguish what they add in the cart and bill a credit card on file once the customer exits through the allotted lane.
Also, the shop has a counter to pick and return the online orders and stations for questioning Alexa about the store.
Last month Amazon disclosed its biggest quarterly profit ever that was gained due to the increased online sale during the COVID-19 pandemic, however, the online retailer suffered a 13% drop in its physical store revenue.