Amazon to challenge Walmart with Grocery Chain

More than a decade after it started selling groceries, Amazon has a smaller share of the U.S. grocery market. While on the other hand, Walmart has been successful with its physical stores, where groceries are a significant part of the revenue. Now, Amazon is looking to challenge Walmart with its offline presence as well. Specifically, Amazon is expanding its Amazon Fresh store, dedicated to grocery shopping and pickup.

Amazon Fresh is a dedicatedgrocery shopping service provided to Prime Members for free. The grocery service will also appeal to a broad section of America, from lower-income shoppers to online customers.The first Amazon Fresh store opened to the public in Los Angeles in September. According to a new Bloomberg report, Amazon is in the process of quadrupling the initial footprint and is looking to add at least 28 more stores from Philadelphia to the Sacramento suburbs.

“As with all things at Amazon, we innovate on behalf of our customers across our grocery businesses. We know customers care about low prices, convenience, and great selection in their grocer, and we believe we offer that as well as a seamless online to in-store grocery shopping experience,” said Jeff Helbling, vice president of Amazon Fresh, in a statement.

According to research by PYMNTS, while Amazon’s acquisition of Whole Foods has permitted the eCommerce leader to get a strong foothold in the market, it has,however, failed to expand its share in groceries and still remains far away from Walmart.