Amazon to Build Convenience Stores

Amazon.com Inc. plans to expand its grocery business by building convenience stores as well as curbside pickup locations, The Wall Street Journal reported.

The e-commerce company plans to build brick-and-mortar stores that sell milk, meats, and other consumables, the newspaper said. The convenience stores will also provide other goods with longer shelf lives for same-day delivery. Amazon is also seeking to build drive-in locations where online orders will bring to the car, which is similar to Wal-Mart’s pick up service.

Customers can place online orders by using their smartphones or touch screens around the stores, say people familiar with the matter.

The program is known as Project Como. Only customers who subscribed to Amazon’s Fresh service can use the pick-up service.

Amazon’s biggest rival in grocery business is Wal-Mart, who started its online grocery business service more than a year ago and boosted its online sales growth in the fiscal second quarter. The service helps customers save time as they can pick out their produce or bring home their groceries on the way from work. It is not easy for Amazon to replicate this idea because Wal-Mart already have many physical stores all around United States, although Amazon has already dominated in e-commerce.

Amazon has been building its bricks-and-mortar stores in recent year, including a bookstore in its home market of Seattle and 25 pop-up locations around the U.S.

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