Amazon expands Whole Foods assortment with new ‘store within a store’ concept

Amazon is testing a new way to blend its grocery offerings with Whole Foods Market’s natural and organic selection.

The retail giant has opened its first-ever “store within a store” inside the Whole Foods Market in Plymouth Meeting, Pennsylvania.

The initiative brings national name-brand groceries and Amazon household essentials into the same space as Whole Foods’ organic and natural products.

At the heart of the pilot is a 10,000-sq.-ft. automated micro-fulfillment center built behind the store.

The facility holds more than 12,000 unique items across both Whole Foods and Amazon assortments, including everyday essentials, snacks, beverages, frozen foods, and personal care products.

The new setup allows shoppers to order both Whole Foods and Amazon products in one transaction, either through the Amazon app or in-store using QR codes displayed on shelves.

Once scanned, the QR codes open a digital storefront where customers can browse and add items to their cart.

Orders are typically ready in under 10 minutes, with notifications sent when products are available for pickup at the store’s Amazon pickup & returns counter.

The automated system was developed with grocery robotics company Fulfil and uses autonomous “ShopBots” to sort, retrieve, and prepare orders across multiple temperature zones.

The integrated system handles both Amazon’s national brands and Whole Foods inventory from a single location.

“At Whole Foods Market, we’ve always taken pride in offering a wide selection of natural and organic products, but we understand our customers appreciate the convenience of one-stop shopping,” said Jason Buechel, VP of Amazon Worldwide Grocery Stores and CEO of Whole Foods Market.

“This new concept store experience allows customers to get everything on their shopping list in one convenient stop or one online order, combining quality with convenience while still delivering the exceptional shopping experience customers expect.”

Grocery pickup is free for all customers, while delivery includes a $9.95 fee for Prime members or is free with Amazon’s grocery delivery subscription.

The micro-fulfillment system marks Amazon’s first use of robotics technology dedicated to grocery operations. The company said it will gather feedback from the Pennsylvania pilot and plans to refine and expand the model to other Whole Foods stores over time.

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