Amazon to Open Physical Grocery Store Outside of Chicago

Amazon reported an 8% increase in physical store sales in its first quarter earnings report.
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Amazon  (AMZN) - Get Report confirmed this week that it will be opening a brick-and-mortar grocery store in a 43,000 square-foot building in suburban Chicago.

The store won't be part of its high-tech cashierless Amazon Go store chain, nor will it be a Whole Foods store, but will instead be more like a traditional grocery store. 

"Amazon is opening a grocery store in Schaumburg in 2020," a company spokesperson said earlier this week, according to Arlington Heights, Illinois-based newspaper The Daily Herald. 

The store will be located at the Schaumburg Corners Shopping Center. The space was formerly a Babies R Us, the newspaper said.

Amazon recorded a breakthrough for its grocery business in its first quarter earnings release after reporting four quarters of essentially flat sales. 

Physical store sales totaled $4.64 billion in the first quarter, an 8% year-over-year increase, driven primarily by the company's Whole Foods business. Physical store sales rose 6.3% sequentially, after falling 0.9% year-over-year in the fourth quarter. 

Amazon's physical store sales for 2019 were $17.19 billion, a 0.2% decline from $17.22 billion in 2018.

Separately, Amazon is escalating its hiring surge during the coronavirus pandemic, announcing plans Thursday to convert the majority of its recently-hired 175,000 temporary staffers to full-time employees.

Amazon will convert 125,000 of the 175,000 temporary hires brought on to deal with the crush of online ordering amid the deadly epidemic to full-time status in June, the company told Reuters.

Full-time jobs at the company come with a minimum wage of $15 an hour.

Amazon shares were up 0.15% to $2,414 Thursday.

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