I think that since most lower priced groceries are not located in premium retail spots, they can partially use the business as a warehouse, cutting down on cost

I think that since most lower priced groceries are not located in premium retail spots, they can partially use the business as a warehouse, cutting down on cost while allowing them to be more competitive. The purchase of Whole Foods seems to have benefited Amazon's grocery logistics, added pressure to competitors wanting to enter the online retail from brick-n-mortar sector, allows them to use the b-n-m to serve as warehouse and increases brand recognition