In this episode of Retail Right Now, Total Retail's Joe Keenan and Kristina Stidham discuss Amazon.com’s plan to open a grocery store concept, one that will be separate from its Whole Foods subsidiary. Amazon will reportedly be testing the grocery store chain in three markets, Chicago, Los Angeles, and Philadelphia, potentially as early as the end of this year. With these new stores, Amazon is extending its physical retail presence, a growth target for the business, and creating additional physical venues to offer services and order fulfillment integrated with its online business.

What does this mean for the rest of the grocery retail sector? In short, more disruption. The grocery industry is already seeing increased competition from online players, and now traditional grocers have to compete with the behemoth that is Amazon — and all of its resources. Pressure intensifies on traditional grocers to offer the convenient online shopping and delivery experiences that consumers, particularly younger shoppers, are increasingly favoring. Further consolidation in the market is likely as companies look to partner up in an effort to better compete against the threat that is Amazon. To read more about Amazon’s plan to open a grocery store concept, click here.