Amazon Tests Out New Whole Foods Format
Amazon is opening another location of its new small-store Whole Foods format as it works to find a successful version of convenience-style, in-person grocery shopping.
Referred to as Daily Shops, these outposts offer quick-service items like grab-and-go foods and wellness products. Amazon intends for the concept to grow the Whole Foods brand without taking on the costs and space needed for a traditional location.
Daily Shops stand at around 4,800 SF to 8,000 SF, a fraction of the typical 40K SF needed for a Whole Foods store. The tiny format is meant to easily fit in high-traffic areas, like city centers, and complement nearby Whole Foods locations.
A Hoboken, New Jersey, store opened Dec. 18., and a Brooklyn location is planned to open early next year. In addition, there are three Daily Shops in Manhattan and another in Arlington, Virginia.
So far, there hasn't been an announcement for more stores.
Amazon has been trying out new grocery store strategies for years, hoping to find one that sticks. Recently, the company decided to focus on the essentials.
Daily Shops launched last year after it became clear the “just walk out” concept of Amazon Go convenience stores wasn’t working. The high-tech outposts were intended for customers to shop without standing in line to pay. Over half of them have closed in the past two years.
Amazon execs said the tech-based model wasn’t great for a store that often changes its displays. This time around, movement is baked into Daily Shops design, with large, mobile and rotating displays.
The company in December launched Amazon Now, a pilot that aims to deliver everyday essentials in 30 minutes or less and comes with a specialized warehouse expansion. It builds on the company's same-day delivery service in over 1,000 cities, which is planned to grow to 2,300 by the end of the year.
Like Daily Shops, Amazon Now is convenience-oriented and offers perishable groceries and cosmetics, but it will serve as a delivery hub instead of an in-store shopping experience.
