Advertisement

Amazon Tests out (Another) New Grocery Format

Whole Foods Market store in Chicago.
Image courtesy Whole Foods.

Whole Foods is beloved for its focus on natural, healthy products, but it can be limiting. That’s why Whole Foods’ owner Amazon is reportedly testing out a number of grocery solutions to offer customers access to products not sold in Whole Foods (think items with artificial sweeteners or color additives), but without requiring them to stray too far from its anchor grocery chain.  

The latest is an Amazon Grocery store in the same building as one of the company’s Whole Foods in downtown Chicago, The Information reports. The small-format store spans 3,800 square feet and features 3,500 products, including grocery and household brands that aren’t sold in Whole Foods, as well as drinks and grab-and-go meals, spokesperson Jessica Martin told The Information. “We’re testing and learning with a new grocery shopping experience with a small-format store from Amazon under the same roof as Whole Foods Market,” said Martin.

Rendering of new automated microfulfillment zone at a Pennsylvania Whole Foods.
Rendering of the new automated microfulfillment zone (in orange) at a Pennsylvania Whole Foods. (Image courtesy Amazon)

Earlier this month, Amazon also announced a different test with a similar goal. The company is working with the startup Fulfil on a new microfulfillment solution that would see an automated warehouse attached to a Whole Foods in Plymouth, Pa., to offer customers items not sold at the organic grocer. Customers will be able to place an order for things like Tide Pods or Pepsi on their phone while doing their Whole Foods shopping, and the order will be ready for pickup when they check out.

Still Trying to Crack the Grocery Nut

With the exception of Whole Foods, which it acquired in 2017, Amazon has struggled to find its place in brick-and-mortar retail. In late 2023, Amazon completed what Coresight Research described as “a brick-and-mortar retreat to grocery,” with the closure of its two Amazon Style fashion-focused stores, which followed the 2022 closure of all its Amazon 4-star, Books and Pop Up stores.  

Advertisement

But even with this heightened focus on grocery, the ecommerce retailer has struggled to gain traction with customers. In 2023, all new Amazon Fresh builds were put on hold, and while new launches have started up again, the retailer announced this spring that it was removing its cashierless Just Walk Out tech from all Fresh stores. The company’s convenience format Amazon Go also seems to be floundering, with a swath of closures since 2023, most recently three NYC locations earlier this month.

Featured Event

View the Retail Trendcaster Webinar Series on-demand to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

On-Demand Limited Video Series

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. View the full lineup of the Retail Trendcaster video series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Access Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: