Dive Brief:
- A Whole Foods Market store in Plymouth Meeting, Pennsylvania, has opened a new “store within a store” concept that introduces name-brand groceries and household essentials sold on Amazon into the specialty grocer’s assortment.
- Powered by a 10,000-square-foot automated micro-fulfillment center constructed within the Whole Foods location’s backroom, shoppers can scan QR codes throughout the aisles to purchase national brand items that aren’t on the specialty grocer’s shelves and then pick them up at a designated counter.
- The ongoing combination of Whole Foods and Amazon’s grocery businesses is becoming more apparent to customers as the specialty grocer welcomes national-brand food and household staples inside its four walls.
Dive Insight:
While products like Pepperidge Farm Goldfish and Tide Laundry Detergent Pods aren’t on Whole Foods’ shelves in front of the eyes of shoppers, the companies’ newly launched “store within a store” concept in Pennsylvania creates a one-stop shop where customers can purchase both specialty and traditional grocery products.
The automated MFC holds over 12,000 items from both Whole Foods and Amazon’s assortments. In-store customers can scan QR codes on digital screens throughout the store, which bring them to the Amazon app and a custom mobile storefront. From there, they can purchase items not offered directly on Whole Foods’ shelves and pick them up at a designated counter. Amazon noted in the announcement that customers will receive a text when their items are ready for pickup, which is often in under 10 minutes.
The use of the MFC is also meant to unify the online shopping experience between Whole Foods and Amazon. When digital customers shop Whole Foods’ online store in the Amazon app or website, they can choose from an expanded product selection that combines both the specialty grocer and Amazon’s full assortment. This allows shoppers to build one cart and complete one online checkout, according to the press release.
“This new concept store experience allows customers to get everything on their shopping list in one convenient stop or one online order, combining quality with convenience while still delivering the exceptional shopping experience customers expect,” Jason Buechel, vice president of Amazon’s worldwide grocery stores and CEO of Whole Foods, said in a statement.
As it collects feedback from this first location, Amazon said it plans to refine and expand this offering to more stores, without specifying a timeline.
This move is the latest example of how Amazon continues to lean into Whole Foods’ grocery empire as Amazon’s brick-and-mortar grocery business continues to struggle. Amazon named Buechel as the head of its Worldwide Grocery Stores division at the start of this year. In June, the company announced a restructured leadership team for the division, bringing in top executives from Whole Foods.
