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What AmazonFresh means for traditional grocery stores

caption: The AmazonFresh Pickup site in Ballard.
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The AmazonFresh Pickup site in Ballard.
KUOW Photo/Angela Nhi Nguyen

Amazon Prime members can now pick up their groceries without getting out of their cars. This is part of a new service they’re trying out called AmazonFresh Pickup.

But what does that mean for traditional grocery stores?

For starters, here’s how AmazonFresh works: You start out by ordering your groceries online or on your phone. Then reserve a pickup time and head to the location.

That’s it.

This kind of service makes the consumer experience quick and convenient. The two Seattle locations are in Ballard and Sodo.

Darren Seifer is a food and beverage industry analyst with The NPD Group, a market research company. He said traditional grocery stores won’t be going away any time soon.

“Even those consumers who shop online for their groceries, the vast majority of their dollars are going to brick-and-mortar stores,” Seifer said.

A couple blocks north of the new Amazon site in Ballard is a cluster of supermarkets, including Ballard Market.

Mike Pedersen is the market director there. He said Amazon’s model is about convenience and markets like his provide the opportunities for connections: interacting with staff, finding inspiration for what to eat among other things.

“We serve the neighbors when they’re looking for one kind of experience and they’re gonna serve the neighbors when they’re looking for another,” Pedersen said. “So in the end, the neighborhood gets served better by having more options.”

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