GRAND BLANC, Mich. (WJRT) – A high profile store is making its way to the town of Grand Blanc. The upcoming Amazon Fresh store has developers hoping to boost the city’s economic growth.
But even though it will become another option for residents to shop, competition with other brands will become fiercer with prices not significantly different from local supermarkets.
“In this area, there are a number of grocery stores that consumers go to, so grocery store competition at the retail level is quite competitive and grocery store profit margins are quite low,” Chris Douglas said.
Douglas is a professor of economics at the University of Michigan Flint and also serves on the Grand Blanc City Council. The addition to the old K-mart place, he says, will definitely benefit the community, but when it comes to rising prices due to inflation, the new option is a huge blow when it comes to savings.
“Amazon’s supply chain is pretty legendary in terms of efficiency, but I wouldn’t expect consumers to see much relief from inflation, due to the arrival of Amazon Fresh in the Great White because they are experiencing inflation from companies raising their prices, to try to scam consumers who are making a higher profit,” he said.
From meat products to ready meals, the options are endless with the new store. But compared to Meijer and Kroger prices, the savings will depend on the product.
“If Amazon carries products offered by competitors, prices may be lower due to the efficiency of Amazon’s supply chain operations,” Douglas said. “You would probably expect to see consumers continue to shop on Amazon Fresh.”
In a statement to ABC 12 News, the National Grocers Associations say supermarkets are seeing the new option more as a possible threat.
“Lack of antitrust enforcement in the grocery market has allowed mainstream retailers to secure more favorable terms and an abundant supply of high-demand products while leaving many smaller retailers with limited selections or, in some cases, bare shelves.”
There is no set date for the start of development or the opening of Amazon Fresh.