The first of a series of planned Amazon Grocery locations was opened in downtown Chicago last week.  The prototype comprises a 4,000-square-foot area offering 3,500 SKUs including coffee, prepared meals and commonly needed grocery items.  Based on location and products offered, Amazon Grocery will appeal to urban residents and commuters and will serve as an upscale convenience store.

Since acquisition of Whole Foods Market with close to 520 locations in the U.S., Amazon has experimented with various permutations of brick-and-mortar formats including Amazon Fresh. Stores have opened and closed without evidence of a coordinated strategy or commitment to enter the quick- service grocery segment.

How this new concept will interlock with subsidiary Whole Foods Market‘s Daily Shop is Unknown, although it is evident that the latest iteration is approximately half the size of a Daily Shop although appealing to a similar clientele.

Depending on the success of the Chicago store, Amazon may extend what is obviously a market probe into additional stores but based on past history, the parent company may shift gears again and develop an alternative concept for evaluation.