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Confidence80%
Amazon plans to build large-format stores that combine a supercenter format with a robotics-powered warehouse.
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Confidence80%
The effort is known internally as Project Kobe.
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Confidence80%
The planned stores will combine grocery and general merchandise with an embedded automated fulfillment center handling in-store shopping, pickup, and delivery from the same building.
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The concept uses AI-driven tools to determine store inventory.
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Internal projections expect overall costs of Kobe stores to be higher than Amazon's existing operations.
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Amazon recently shut down its Go and Fresh store networks.
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Confidence80%
Amazon acquired Whole Foods for $13.7 billion.
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Confidence80%
The first Kobe store will be located in Orland Park, Illinois.
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Amazon is planning additional Kobe store sites in Cherry Hill, New Jersey; Edison, New Jersey; and Oak Brook, Illinois.
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Internal documents reference plans to potentially open dozens of Kobe stores if early pilots prove successful.
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Confidence80%
Kobe stores will have a floor area of about 225,000 square feet.
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Kobe stores combine grocery and general merchandise under one roof.
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Each Kobe store design dedicates a large portion of the building to automated storage, picking, and packaging as a core part of the store.
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Amazon told the Orland Park Plan Commission in January that about 100,000 square feet of the Orland Park Kobe store would be dedicated to warehouse space, roughly half of the building.
Linwei Xin, associate professor at Cornell University specializing in supply chain management
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Confidence80%
Walmart typically uses between about 18,000 and 36,000 square feet for back-of-store fulfillment in its stores.
Linwei Xin, associate professor at Cornell University specializing in supply chain management
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Confidence80%
To my knowledge, there is no clear precedent.
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Internal documents estimate that Kobe stores will display or store about 250,000 items.
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Internal documents estimate that this item count is nearly double the number carried by most Walmart stores.
Marc Wulfraat, president of logistics consultancy MWPVL
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The Amazon proposal calls for a larger-scale integrated retail and online order fulfillment solution.
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Confidence80%
Internal projections indicate that the Kobe format will have higher operating costs than comparable fulfillment systems Amazon currently runs.
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Confidence80%
Internal projections estimate that each item in Kobe stores will cost about 12% more to fulfill than through Amazon's sub-same-day delivery network.
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Confidence80%
Internal documents estimate that perishable grocery orders in Kobe stores could cost almost $2 per unit to fulfill.
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Confidence80%
That perishable grocery fulfillment cost is roughly 10% more than Amazon's sub-same-day deliveries.
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Confidence80%
Many items in Kobe stores are still picked from the sales floor.
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Workers must walk more than 500 feet to retrieve products from the sales floor to the fulfillment area in Kobe stores.
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Confidence80%
The proposed Kobe store in Orland Park is estimated to require $33 million in capital expenditure.
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Confidence80%
Future Kobe sites are expected to shift more grocery inventory to the back of the facility to reduce sales floor congestion.
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Internal documents warn this inventory shift could introduce new constraints around refrigeration and warehouse space.
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Amazon holds 3% of the US grocery market.
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Walmart holds 21% of the US grocery market.
spokesperson
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An Amazon spokesperson said the concept for Kobe stores is still in early development.
spokesperson
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The new supercenter concept we are testing will make it convenient for customers to shop a broad selection of quality products at great value across fresh groceries, household essentials, and general merchandise — all in one trip.
spokesperson
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A spokesperson said that Numerator data underrepresents Amazon's grocery share.
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Walmart's supercenter locations allow it to reach 93% of U.S. households with same-day service.
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Jason Buechel is CEO of Whole Foods and serves as Amazon's VP of Worldwide Grocery.
Jason Buechel, CEO of Whole Foods and Amazon VP of Worldwide Grocery
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Confidence80%
Since taking on his role last year, Jason Buechel has focused on reshaping Amazon's grocery operations and integrating them more closely with Whole Foods.
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Confidence80%
The Kobe store warehouse uses a robotic storage system from AutoStore, a warehouse-automation company.
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Confidence80%
The AutoStore system uses a grid of stacked bins with robots moving across the top to retrieve items.
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