Amazon is planning to open its own grocery stores in the United States with lower price points than Whole Foods, the Wall Street Journal is reporting.
The mammoth shipping conglomerate is planning to open dozens of the stores, with the first one opening in Los Angeles perhaps by the end of this year.
CNBC reports that stock prices for Walmart, Kroger, Target, BJs, Costco and Sprouts all dipped sharply on the news on Friday.
Amazon declined to comment on the report.
Amazon reportedly is girding to expand even more early next year with two more leases already signed for additional grocery locations.
It’s unclear whether the locations will have Amazon’s name or will operate under the Whole Foods Brand. CNBC reports that among locations already being considered include Chicago, Washington D.C., Philadelphia, Seattle and San Francisco.
The new stores would be smaller than the typical grocery store of about 60,000 square feet. The Journal reports that Amazon would seek about 35,000 square feet of operating space in their proposed stores.
Interestingly, there is no word if Amazon would be willing to venture into the Texas grocery market. Industry giant H-E-B dominates across the state, one of the fastest-growing and most fertile areas for new business in the nation.
Would Amazon be willing to challenge H-E-B across the state?
Or would it shirk a potential battle with an established market leader that has vanquished other potential challengers over the years?
