Amazon Sends Clear Message to Walmart With Big Announcement

Amazon has tested several new, in-person shopping experiences for customers in recent years. With their latest project, the company is taking aim at Walmart's big-box retail domain.

Earlier this month, the village of Orland Park, Illinois announced that Amazon had chosen their city as the site of a proposed commercial retail brick-and-mortar store, to be housed at the southwest corner of 159th Street and LaGrange Road, the location of a former restaurant.

The 35-acre, 225,000-to-229,000 square-foot building is nearly 50,000 square feet bigger than the size of the average Walmart supercenter.

“We regularly test new experiences designed to make customers’ lives better and easier every day, including physical stores,” an Amazon spokesperson said in a statement to CNBC. “The site in question is our planned location for a new concept that we think customers will be excited about.”

What will the Orland Park Amazon facility consist of?

According to Grocery Dive, the new Amazon big box facility will carry, among other items, "fresh groceries, household essentials and general merchandise." There will also be specific parking for pickup orders and commercial space for small businesses.

The store would also be located near other established retail entities, including Costco, Target, and Trader Joe’s.

“This is a prime location, and we are encouraged to see it being considered for full commercial redevelopment,” says Orland Park Mayor Jim Dodge. “Projects like this have the potential to generate substantial sales tax revenue that directly benefits residents while strengthening one of our most important corridors.” 

Development plans have been approved by the town's Planning Commission, with the village board still needing to give its thumbs up later this month, Patch reported.

Another brick-and-mortar move for Amazon

Known for its work in technology and e-commerce, Amazon has attempted to increase its brick-and-mortar footprint since purchasing Whole Foods Market in 2017.

The company launched Amazon Fresh grocery stores in 2020, and last year, a Whole Foods in Plymouth, Pennsylvania began experimenting with using in-aisle QR codes to access a micro-fulfillment center located within the store.

Amazon has also experimented with bookstores, apparel outlets, shopping mall kiosks and other initiatives, with mixed results.