Walmart, Target and many others have been notified. The grocery industry has grown by one, as Amazon.com has become a new player in the industry.
A report says Amazon will unveil its new online grocery business that has been developed for over two years. One source, said the company plans to unveil AmazonFresh, which is currently selling online to just customers in Seattle, Washington.
Included in Amazon’s new expansion plans are refrigerated warehouses that have the space to store thousands of products and space for up to one million products unrefrigerated.
Amazon plans to expand the online service outside of Seattle as soon as this week by opening up service in the Los Angeles area and sometime in the latter part of the year in the San Francisco area.
If sales go well in those two areas, Amazon is planning to launch the online business in a minimum of 20 cities in 2014, which would also include its first international locations.
Existing grocery chains that could feel the brunt of Amazon’s new business includes Kroger, Whole Foods, Safeway and large retailers such as Walmart and Target.
Sources said Walmart was looking to expand into the grocery business online even though the business has not proven to be great in the past. Webvan went bankrupt in 2001 before Amazon was able to revive it in 2009.
Amazon is considered a good challenger to other supermarket chains by analysts since they can use the grocery business as a lost leader in hopes that they sell additional more profitable products to people at the same time.
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