Whole Foods may soon introduce robot warehouses for customers to pick up other orders during checkout, as Amazon tests the idea.

Whole Foods may soon introduce robot warehouses for customers to pick up other orders during checkout, as Amazon tests the idea.
Whole Foods may soon introduce robot warehouses for customers to pick up other orders during checkout, as Amazon tests the idea.
  • Amazon is testing adding automated mini warehouses to Whole Foods supermarkets.
  • Whole Foods now offers a new store format that enables customers to purchase items from its online store and mass-market supermarket chain while browsing in-store.
  • Amazon aims to capture grocery sales from competitors by allowing customers to complete all their shopping in one trip.

Whole Foods announced on Wednesday that it is testing the addition of mini warehouses to its supermarkets as a strategy to attract more customers and differentiate itself from competitors in the grocery industry.

A micro fulfillment center is being constructed at a Whole Foods location in Plymouth Meeting, Pennsylvania, where customers can order groceries from Amazon Fresh and pick them up in store upon completion of their purchase.

Anand Varadarajan, head of Amazon's global grocery business, unveiled a mockup of the completed facility at a press event near an Amazon warehouse in Nashville. The facility would consist of a small automated warehouse attached to a Whole Foods store, where robots would retrieve and transport items such as socks, soda bottles, and tennis rackets, and place them into bags for pickup by customers.

Whole Foods markets don't carry certain brands like Pepsi soda and Kellogg's cereal, but shoppers can still purchase these items and more through Amazon's online catalog.

Amazon aims to reduce the number of trips made by shoppers to other grocery stores, as stated by the company. On average, Americans visit two different grocery stores per week for various reasons such as cost savings, broader product range, and promotions, according to an April study by market research firm Drive Research.

"Whole Foods Market customers are seeking natural and organic products, but our data reveals that many of them also visit other stores to meet their regular grocery shopping requirements. Our micro fulfillment center can help reduce the need for customers to visit different stores or make multiple online orders."

For years, Amazon has aimed to increase its market share in the grocery industry, which is a popular spending category among Americans. However, the company faces competition from established players such as Walmart, Kroger, and regional grocers.

In 2017, Amazon spent $13.7 billion to acquire Whole Foods, which was more than 10 times the amount it had paid in any previous deal. Additionally, the company has been expanding its grocery offerings, including launching a delivery service and its own supermarket chain, Amazon Fresh, targeting the mass market.

Amazon CEO Andy Jassy stated that the company's business in selling "everyday essentials" such as paper towels, dish soap, and other items is growing.

by Annie Palmer

Technology