Amazon tests robot-powered Whole Foods hybrid
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Amazon is testing a pilot at a Whole Foods Market store near Philadelphia. Photo: Courtesy of Amazon
Amazon is testing a robot-powered "store within a store" at a Whole Foods Market near Philadelphia, merging the grocer's organic offerings with Amazon's regular brands — and a promise of speed.
Why it matters: The move underscores Amazon's ongoing effort to refine its grocery strategy — even as it generates more than $100 billion in annual grocery sales.
Driving the news: Amazon announced Wednesday a new concept for its Plymouth Meeting, Pennsylvania Whole Foods — featuring a 10,000-square-foot micro-fulfillment center powered by Silicon Valley startup Fulfil.
- The concept essentially merges a regular grocery store into Whole Foods, using a robotic fulfillment center behind the scenes.
- The automated system pulls from more than 12,000 products, including national brands like Tide and Pepperidge Farm.
How it works: In-store shoppers check out their Whole Foods groceries as usual, but order national brands like snacks or cleaning supplies separately through QR codes or the Amazon app.
- Online shoppers see one combined cart, with both Whole Foods' organic items and Amazon's household brands, for delivery or curbside pickup.
- Amazon items ordered from QR codes inside the Whole Foods Market store are ready within minutes at the Amazon Pickup & Returns Counter, the company said.
- Pickup is free for all customers, while delivery costs $9.95 unless Prime members subscribe to Amazon's grocery delivery add-on plan.
Flashback: Amazon has spent years experimenting with grocery formats — from Amazon Go's cashierless convenience stores and Amazon Fresh supermarkets to the 2017 Whole Foods acquisition.
- Amazon has been shifting its strategy, closing underperforming Fresh stores and removing Just Walk Out checkout technology from some of its stores while continuing to license it to third-party retailers.
What they're saying: "While Amazon's new Whole Foods store concept may come under fire from brand purists, it's an appropriate response to customer demand," said Neil Saunders, managing director at GlobalData.
- "Amazon wants to capture more spending without diluting the Whole Foods brand," he said.
What's next: Amazon says it "plans to refine and expand this offering" to additional stores.
Editor's note: This story has been updated with additional information from Amazon.
