Amazon is planning to launch a new retail business, which is not connected to its current operations through the Whole Foods Market stores and online operations.
The Wall Street Journal reported that the company planned to open its first retail store in Los Angeles by the end of 2019. Amazon has already signed lease agreements on at least another two locations, which should open in early 2020.
According to the WSJ, it is still unclear whether new retail stores will operate under the Amazon Stores banner.
The company is also looking into potential acquisitions in order to expand its new brand of supermarkets through purchasing regional store chains with around ten stores, the WSJ writes.
Amazon is now negotiating the opening of stores in shopping malls in San Francisco, Seattle, Chicago, Washington and Philadelphia.
The new stores will offer products at lower prices. The offer will include products different from those available at the Whole Food Market stores.
After the WSJ reported about Amazon's plans, the stocks of other retailers operating through supermarkets dropped. Kroger stock dropped by 3.6%, Walmart went down by 1%, whereas Sprouts Farmers Market dropped by 1.1%. Amazon's shares rose by 1.4%.
Amazon.com and Whole Foods Market have dozens of food and non-food private brands combined.