Amazon looks to expand grocery operations with new store format

Ecommerce giant Amazon is expanding its reach in the grocery business after as it plans the introduction of convenience stores - according to reports from the Wall Street Journal.

The shops are reported to include items such as milk and meats, as well as the option to buy other products for same-day delivery.

Other possible new developments include the purchasing of items through an app which allows the consumer to sit in their car and have the items brought directly to them.

Amazon has invested heavily in its "Fresh" service, which offers free grocery delivery to its Prime customers. It has recently changed its subscription model from an annual fee of $299 to a $15 monthly membership for those registered with Prime.

The move will see the company aiming to directly compete with more traditional convenience store rivals and supermarkets such as Walmart and Costco.

The Seattle-based company has seen a record year of profits, with the last three quarters each breaking the previous record.

A lengthy period of investments and quarterly losses had previously left investors concerned about Amazon's long term profitability, but five consecutive quarters in the black has quashed the notion.