AmazonFresh delivery service comes to Chicago

Kim Kyung-Hoon

This strategy isn't new for the company, with Amazon in 2011 offering the Prime Video streaming service for free to members, which also included for-sale digital movies and TV shows displayed right by the free videos.

Amazon.com Inc reported a 29 percent rise in quarterly revenue on Thursday, boosted by a big jump in sales from its Prime Day annual shopping festival, strong back-to-school shopping and its market-leading cloud services business.

Amazon.com is looking to open 20 brick-and-mortar grocery stores over the next two years under the Amazon Fresh banner, and believes the US grocery landscape could accommodate up to 2,000 of them over the next decade. The division, which rents out server capacity and hosts online operations for companies small and large, earned $3.2 billion, $861 million of which was profit.

What do you think about Amazon opening grocery stores? "They are going to be high sometimes and they'll be moderate at other times".

Amazon extended its string of positive results after years of investments that produced little or no profit, helped by its cloud computing, streaming video and new products and services. Amazon announced Wednesday that AmazonFresh has expanded to Chicago and Dallas. Leveraging customer data, improving personalization, mobile centricitiy and building efficiencies into in-store experience are the only solutions for grocers seeking to survive in this new era.

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The drive-in stores would likely be around 10,000 square feet, while the traditional stores would be just that, traditional, at 30,000 square feet, the documents state. The figures were boosted by Amazon's Prime Day, when it offers deals to consumers.

Amazon recently launched a voice-controlled bluetooth speaker, Amazon Echo, powered by "Alexa", a system which takes commands on what music to play.

But Amazon appears to have a plan to wring out a little more subscription money from its most loyal customers, and avoid more shipping costs to boot. When reports first surfaced about Amazon planning to open stores, it was mentioned that the stores could be for members of Prime Fresh.

"Amazon Fresh will only succeed as a grocery retailer if they can sell more groceries and selling more groceries requires attracting and delighting as many customers as possible through all available channels", wrote Ladd, who declined to comment for this story.