Amazon Opens Grocery Pickup Kiosks to Rival Wal-Mart
Amazon Opens Grocery Pickup Kiosks to Rival Wal-Mart
by Spencer Soper May 25, 2017, 8:30 AM PDT May 25, 2017,
9:45 AM PDT
Amazon.com Inc. opened two grocery pickup kiosks in
Seattle, part of its latest effort to enter the $800 billion grocery market and
compete with “click and collect” shopping options from big box competitors like
Wal-Mart Stores Inc.
The “AmazonFresh Pickup” spots let shoppers buy groceries
online and pick them up in as little as 15 minutes rather than having them
delivered to their homes. The service is open to Amazon Prime members who pay $99
a year for delivery discounts and video and music streaming. Each location has
parking spaces beneath canopies similar to those seen at gas stations.
Grocery sales have been slow to shift online, unlike
books and electronics, leaving Amazon at a disadvantage to competitors like
Wal-Mart, Target Corp. and supermarket chain Kroger Co. Amazon is experimenting
with brick-and-mortar concepts to get a toehold in grocery sales while its
competitors add online options to their existing stores.
Amazon also opened a convenience store format called
“Amazon Go” that lets shoppers check in with a smartphone app, grab sandwiches,
salads and other items they want from shelves and leave without having to check
out. Instead, customers get billed automatically. The format is being tested by
employees, who have found the technology crashes when the store gets too
crowded, according to people familiar with the matter.
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