Amazon is planning to operate a 20-location pilot programme for its grocery stores in Seattle, Las Vegas, New York, Miami, and the Bay Area, businessinsider.com reports.
Ten of the grocery stores will be click-and-collect drive-up spots for Amazon customers to pick up their online orders. The other 10 will be traditional stores.
An internal market research report from 2014 that was updated earlier in 2016 focused not only on sales data from Amazons Fresh and Prime delivery services but on market data from competing grocery stores.
By going membership-only, Amazon can use the membership fees to offset the high operating costs of grocery stores. On the other hand, eliminating the membership requirement could help the stores reach a broader set of customers and increase sales faster.
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