Amazon (NASDAQ:AMZN) is opening the first location of its new chain of grocery stores, which are designed to court a different set of customers than Whole Foods shoppers.
The first Amazon Fresh grocery store, located in Los Angeles’ Woodland Hills neighborhood, will open its doors this week to customers invited from the local area, the company announced Thursday. The store will open to the broader public in the coming weeks. Amazon has three other Fresh store locations, including in Irvine and Northridge, California, as well as Chicago’s Naperville neighborhood, all of which are being used for online order fulfillment. The company declined to say when they’ll open to the public.
Amazon is aiming to crack open a new segment of the U.S. grocery industry with the launch of its Fresh store, bringing the e-commerce giant into more direct competition with chains like Kroger (NYSE:KR) and Albertsons (NYSE:ACI)
The new format incorporates a blend of in-store and online shopping, while offering consumers a variety of products at lower price points than Whole Foods. Whole Foods, acquired by Amazon for $13.7 billion in 2017, is known for its focus on organic goods and doesn’t sell products with artificial ingredients.
The 35,000-square-foot store, which is roughly the size of a Whole Foods, will be stocked with supermarket staples like Nabisco cookies, Coca-Cola (NYSE:KO) drinks and Kellogg’s (NYSE:K) cereal, as well as products from Whole Foods’ cheaper private-label brand, 365. Store aisles will also feature Amazon’s own brands, including Happy Belly snacks, Cursive wine and a new line of Fresh-branded food products.
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