Amazon.com Inc. (AMZN) - Get Reportreportedly plans to build and expand Whole Foods stores across the U.S. to put more customers within range of the e-commerce giant's two-hour delivery service.
The push would bring Whole Foods to more suburbs and other areas where the company is quickly adding customers since Amazon bought it in 2017 for about $13.5 billion, The Wall Street Journal reported.
Amazon and Whole Foods declined to comment for the Journal on new store construction or spending. In the Rocky Mountain region, one person familiar with the plans told the newspaper that Whole Foods employees have visited potential retail spaces in parts of Idaho, southern Utah and Wyoming, where Whole Foods doesn't have stores now.
Amazon was rising 2% in premarket trading on Monday.
The Seattle online giant has built up its presence in apparel, business-to-business e-commerce, consumer Internet of Things, groceries, professional services, and physical stores. The purchase of PillPack in 2018 allowed Amazon to enter the pharmacy business.
According to D.A. Davidson analyst Tom Forte, gas stations and travel offer other possibilities for Amazon. But the company has struggled with women's apparel and buying a company like Lululemon Athletica Inc. (LULU) - Get Report could make sense, Forte said.