Amazon.com Inc plans to open dozens of grocery stores across the United States as it looks to expand in the food business, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Shares of grocers such as Walmart were down 0.99 percent while Costco traded up 0.21 percent up. Kroger traded down over 4 percent. Amazon was up 1.68 percent.
Amazon, which bought the upscale Whole Foods chain for $13.7 billion in 2017, is now in talks to open grocery stores in shopping centers in San Francisco, Seattle, Chicago, Washington, D.C., and Philadelphia, the WSJ report said.
The online retail giant plans to open its first store in Los Angeles as early as the end of the year, and has already signed leases for at least two other grocery locations with openings planned for early next year, the Journal reported.
The new stores were not intended to compete directly with Whole Foods, according to the report.