Amazon’s brick-and-mortar grocery ambitions don’t stop with Whole Foods and Amazon Go.
The company plans to launch dozens of grocery stores across multiple large U.S. cities, according to a report from The Wall Street Journal that cites unnamed people familiar with the matter.
The first outlet could open as early as the end of this year in Los Angeles, and leases have reportedly been signed for at least two other stores to open in 2020. Amazon is also in talks to open stores in San Francisco, Seattle, Chicago, Washington, D.C. and Philadelphia.
Amazon might expand the new supermarket brand by acquiring regional grocery store chains, the Journal reported.
But the e-commerce giant won’t be splashing the Whole Foods brand on these stores, and it’s not clear if Amazon’s name will be on them either. Rather than compete directly with the upscale Whole Foods experience, the new stores are meant to attract less affluent shoppers with different products at a lower price point.
An Amazon spokesperson declined to comment on the report.
Kroger’s stock fell more than 4 percent following the news. Shares of Walmart and Sprout Farmers Markets were also down slightly.
In addition to the nearly 500 Whole Foods locations that it operates, Amazon also offers groceries through its Amazon Fresh delivery service and 10 cashier-less Amazon Go stores.