In-Store Experience: Amazon Grocery in Chicago
In October, Amazon debuted a small-format grocery test store in the same high-rise that already houses a Whole Foods Market in Chicago’s River North neighborhood. The scaled-down grocery store, called Amazon Grocery, is located on the first floor of One Chicago Building (at 14 W. Superior Street) adjacent to escalators leading to the Whole Foods on the second floor.
The space spans just 3,800 square feet and caters to shoppers making quick trips. It stocks more than 3,500 products, including grab-and-go meals and coffee as well as household and personal care essentials that aren’t offered at Whole Foods, which focuses on natural and organic products.
The experiment is another example of how Amazon is diversifying its footprint and doubling down on grocery. This store opened just a month after Whole Foods opened its Daily Shop small format in New York, which ranges in size from 7,000 to 14,000 square feet.
The Path to Purchase Institute recently visited Amazon Grocery. Right away, it felt like multiple different stores in one. We immediately noticed the few cashierless checkouts and the grab-and-go options aplenty. The space felt like walking into a modern airport store that offers a little bit of everything (aside from the walls of books, magazines and souvenirs, of course).
It also felt like a convenience store of sorts, with the donut case as well as various self-serve options, such as an Icee machine, fountain beverage dispenser and frozen yogurt machine located at the back wall beneath a large “Cold Drinks” sign. There was also a small seating area and a coffee counter with a short menu, like a coffee shop, which previously occupied the space before Amazon Grocery took it over.
Additionally, the variety of consumer packaged goods and common mass-market brands, such as Pepsi, M&M’s and Tide, brought a regular grocery feel to the space.
Notably, despite its small size, Amazon Grocery does offer ways for brands to elevate their products in-store. In fact, we were surprised to see a bilingual Chicago Bears-themed spectacular from PepsiCo/Frito-Lay in the grocery side of the store.
Within the grocery section were about six aisles, surrounded by walls of coolers for frozen and refrigerated goods, as well as shelves stocking CPG brands.
Another unique advertising opportunity that caught our eye were multiple digital screens rotating ads promoting special offers, such as “buy one, get one 50% off” items in the bakery case.
Other elements we noticed on our visit:
- The store exclusively uses electronic price labels.
- Lining the cashierless checkout kiosks is a long rack merchandising individual impulse buys, such as candy and gum.
- Most of the ice cream containers in the freezer are smaller than a pint.
- Window clings highlighted special deals to pedestrians.