Amazon is testing mini-warehouses in Whole Foods supermarkets as part of an effort to attract more shoppers and reduce their visits to competitors.
The retail giant has begun constructing a micro fulfillment center at Whole Foods in Plymouth Meeting, Pennsylvania, a suburb of Philadelphia.
Set to launch next year, the facility will allow customers to order from Amazon’s online grocery service, Amazon Fresh, while shopping at Whole Foods, and pick up their items at checkout.
At a recent event in Nashville, Anand Varadarajan, head of Amazon’s worldwide grocery product and technology teams, showcased a mockup of the facility.
The small, automated warehouse will be attached to the Whole Foods store, where robots will retrieve items such as soda, cereal, and household goods for shoppers.
Robots will help fulfill Amazon Fresh orders, providing quick pickup options within Whole Foods locations.This will give customers access to brands not typically stocked at Whole Foods, including Pepsi and Kellogg’s.
Amazon’s goal is to eliminate extra trips to different grocery stores. According to an April study by Drive Research, the average American visits two grocery stores weekly to access a broader range of products and maximize savings.
“Our micro fulfillment center aims to meet more of our customers’ needs in one stop,” Varadarajan said.
Amazon continues to expand its presence in the grocery sector, which remains a top consumer spending category in the U.S.
The company faces stiff competition from industry leaders like Walmart, Kroger, and Albertsons.
In 2017, Amazon acquired Whole Foods for $13.7 billion and has since launched additional grocery ventures, including Amazon Fresh and a delivery service for everyday essentials like paper towels and dish soap.