Amazon retail to enter smaller cities

Amazon’s fully owned food retailing subsidiary in India appears to be finally taking off after New Delhi gave its assent to the venture for locally sourced items two years ago, multiple suppliers to the online grocer. Amazon Retail India, present in more than 100 cities, plans to expand to 60 tier 2-3 cities in the next 12-14 months.

In 2017, the company received federal approval for investing $500 million in a venture to sell locally-produced food items. Multiple food distributors in various cities said currently Amazon is in the process of lining up dozens of small delivery centres, in the range of 2,000 sq ft, in tier-2 and tier-3 cities for its supply chain model that will primarily be fed by large warehouses.

ARIPL currently sells about 3,000 stock keeping units of food items and has lined up a network of 250 suppliers in various cities. Amazon did not respond to an email seeking its comments.