Dive Brief:

• Amazon is reportedly planning to open three grocery stores in the Philadelphia metro area under its new, yet-to-be-named banner, according to the Philadelphia Business Journal. All three could be open by the end of the year.
• Sources recently told Food Trade News that Amazon would take over a 36,000-square-foot portion of a former Giant store in Warrington, Pennsylvania. Giant left the site in 2013.
• The retailer is also planning to lease 41,000 square feet of a former Kmart site in Bensalem, Pennsylvania, which was initially expected to be the site of a new ShopRite. Details of a rumored third location in the center of Philadelphia have not been shared. An Amazon spokesperson did not respond to a request for comment.

Dive Insight:

Although Amazon has yet to open its first supermarket, plans are well underway for additional locations as the retail giant looks to take on traditional grocery.

Amazon also operates distribution centers around Philadelphia, and recently pursued another location in Bensalem, where it will also reportedly be putting one of its new grocery stores. The company expanded Amazon Fresh to the market in 2019, and previous reports have said the company could consider Philadelphia for an Amazon Go location. 

With an established presence and a distribution network already in place, Philadelphia could be an ideal location for Amazon to scale quickly as it rolls out its grocery banner. 

Its launch there won’t necessarily be easy, though. The Philadelphia market is already a very competitive one for grocers. The Giant Company and ShopRite are leaders in the region, accounting for 15.4% and 14.8% of the market respectively in 2019, according to data from Food Trade News. Giant also debuted its Giant Heirloom neighborhood concept in Philadelphia, where it now has three of the small-scale specialty stores. 

Additionally, Lidl, which will rival Amazon on price, entered the region last year and now operates five stores in the city and surrounding suburbs. The German discounter had plans for another Philly location in South Philadelphia, but earlier this year changed plans and it was reported that Giant would take over the site instead. 

According to reports, the first Amazon grocery store will open in Woodland Hills later this year. The company has also confirmed a location in Irvine, California and three stores in suburban Chicago. Reports have also linked the yet-to-be-named chain to Seattle and Washington, D.C., and earlier this year Amazon took over the leases on two former Fairway Market stores. 

This week, Amazon unveiled the Dash Cart, a tech-enabled shopping cart that lets shoppers skip the checkout lane. The new gadget will debut at its Woodland Hills store later this year.