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Planning documents reveal Amazon will open click and collect grocery hubs

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By Tony Connelly, Sports Marketing Reporter

August 25, 2016 | 2 min read

Amazon is reportedly considering opening “click and collect” grocery hubs as it looks to strengthen its footing in the highly competitive $800bn grocery market.

Amazon fresh

Amazon Fresh

The move would allow customers to buy food products online and schedule a 15-minute to 2-hour pick-up window at one of the possible locations being considered which include San Carlos and Sunnyvale, California as well as Amazon's hometown of Seattle.

The pick-up hubs would complement Amazon’s current grocery offerings, Amazon Fresh and Prime Now, while also adding an additional layer of convenience for commuters traveling home from work.

Reports of the move are based on planning documents and multiple reports from business news outlets. The Silicon Valley Business Journal cited planning and loan documents, saying that Amazon was behind the proposed, grocery delivery pick-up center in San Carlos, Calif.

Tech website Geekwire meanwhile, maintained that the company behind “Project X” is likely Amazon as it used the same architect that Amazon used for its Prime Now delivery hub in Seattle, and the same language found in planning documents for the two Silicon Valley grocery pick-up locations.

If the expansions go ahead Amazon will be well positioned to capitalise on the huge number of younger consumers who currently use online grocery shopping and grow its 1 per cent share of the $795bn U.S. food and beverage market.

It would also tie younger consumers to the company and give it valuable data and insights into their shopping habits.

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