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Amazon launching a new grocery store "distinct from Whole Foods"

Amazon to debut new grocery stores
Amazon to open new line of grocery stores, first in California 00:29

Amazon plans to open a new line of grocery stores in California next year, the company confirmed to CNET.

An Amazon-branded grocery store will launch in the Los Angeles neighborhood of Woodland Hills in 2020, CNET reports. Amazon said the store would be different from Whole Foods and would not compete against Whole Foods, although it did not clarify what the store's name or price range would be or what food products it would carry.

"No, this store will not compete with Whole Foods Market," a company spokesperson told CBS News in an email. "When it comes to grocery shopping, we know customers love choice and this new store offers another grocery option that's distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food," the person said.

The store will feature conventional checkout and won't use Amazon Go cashierless technology, Amazon told CNET.

A job posting describes the store as "Amazon's first grocery store." The company is hiring for a full-time "zone leader" managing an in-store zone with a starting pay rate of $16.90 per hour, according to the listing.

The online shopping giant purchased Whole Foods in 2017 for $13 billion but remains a relatively small player in the grocery business. It recently removed a $15 monthly fee for Amazon Fresh grocery delivery in a bid to undercut rival Walmart, which currently commands the lion's share of the nation's grocery market.

The company is also in talks to open grocery stores in San Francisco, Seattle, Chicago, Philadelphia and Washington, D.C., the Wall Street Journal reported in March.

This story was updated to include Amazon's statement that its new store concept would not be competing with its Whole Foods division.

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