Inside The World's First Specialty Grocery Food Hall Sold On Amazon Prime Now
July 19, 2023
To gain a glimpse into the future of omnichannel food halls, look no further than Mercado de la Paz in Madrid. The historic building was founded in 1882 and is located in Salamanca, one of the wealthiest areas of the city that has become a cultural hub for luxury retail, theaters, and museums. Today, it houses 54 stalls ranging from restaurants to specialty grocery and non-food vendors like dry cleaners and florists. It is the only food hall in the world that sells ~3.5k of its unique SKUs via Amazon’s Prime Now service to be delivered in a two hour same-day window. The partnership began seven years ago when Amazon negotiated a 15% commission to be charged to merchants. A year later, it was reported that online sales accounted for 10-25% of each vendor’s total sales. The market set up a dedicated fulfillment area where orders are packed and stored for couriers, who are also able to access the market via a bike ramp for easy ingress and egress. Since then, Amazon has expanded its third-party local US marketplace to include retailers like Rite Aid, Save Mart and Cardenas Markets in addition to its longstanding relationship with Bristol Farms in Southern California. HNGRY recently visited Mercado de la Paz to get a firsthand look at its unique mix of vendors and stall formats.