Amazon is planning to ramp up its network of Whole Foods stores across the US to bring more consumers within range of its two-hour Prime Now delivery service.
The plan is to bring more Whole Foods to suburbs and other areas where it’s been rapidly adding customers since the merger, according to a report by Yahoo Finance. The move is seen as another response to stiff competition from Walmart in the grocery space.
New locations being eyed by Whole foods are a bit larger than the current average Whole Foods store, suggesting that the added space may be used to accommodate Amazon delivery and pickup from online orders.
The strategy is expected to increase competition in the grocery business as consumers do more of their shopping online.
Prime Now two-hour delivery is now offered to members of Amazon’s Prime subscription service in more than 60 cities across the US, while online grocery pickup from Whole Foods within as little as 30 minutes is available in almost 30 cities. Amazon plans to expand those services to almost all of its 475 US locations, a source told Yahoo Finance.