It is now increasingly evident that Amazon wants to focus on its physical presence in different states across the U.S. According to a Wall Street Journal report, the e-commerce giant is so pleased with its collaboration with Whole Foods since the acquisition of the company in 2017, that now it plans to add more Whole Foods stores in cities like Idaho, southern Utah and Wyoming.
Amazon’s optimism for its physical presence is such that the to-be launched stores are supposed to cover an area larger than the average Whole Foods store, which are currently operational. The expected store size is 45,000 square feet.
This optimism is not groundless. Amazon’s Whole Foods grocery service increased from 20 cities in the second quarter to over 60 cities in the third quarter. Further, this is reflected in the company’s revenue from its physical stores swelling to more than $4 billion in the third-quarter, in addition to $29 billion generated through its online sales.
Amazon’s growing bet on physical stores is also evident in its other physical store formats like the recently opened Amazon go stores and bookstores across U.S., especially in cities like Seattle, Chicago and San Francisco. The aim is to reach and fulfill as many customer requirements through omni-channel formats.