Amazon.com Inc. is preparing to deepen its push into physical retail with plans to build a large-format store in Chicago focused on groceries and everyday essentials, a move that would put the company in more direct competition with Walmart and Target, DKNews.kz reports.
The proposed store would span more than 21,000 square meters, making it one of Amazon’s larger brick-and-mortar retail projects to date.
Construction Could Begin Later This Year
If the project receives final approval from regional officials, Amazon could break ground as early as the end of this year. Earlier this month, the plan was reviewed by the local planning commission and subsequently approved by Mayor Jim Dodge, signaling strong local support.
A Store, Not a Distribution Hub
Amazon has emphasized that the site is intended to operate as a full-service retail store, not a logistics facility. While the design includes a limited storage component, it will be used solely to support in-store operations and inventory management, rather than functioning as a distribution center.
In addition to groceries and household staples, Amazon plans to sell prepared foods, catering to urban shoppers looking for convenience and quick meals.
Why Amazon Is Expanding Offline
The Chicago project highlights Amazon’s broader strategy of blending online dominance with physical retail. Even as e-commerce remains its core business, the company continues to experiment with brick-and-mortar formats that combine digital tools, data-driven merchandising, and last-mile logistics.
For the broader retail market, the move underscores intensifying competition in groceries and everyday goods - one of the most fiercely contested segments in US retail.
What Comes Next
If the Chicago store proves successful, it could serve as a blueprint for similar locations in other major US cities. Investors and competitors alike will be watching closely to see whether Amazon can translate its online strengths into sustained success on the physical retail floor.
