Amazon said to be developing ‘Pantry’ service to go after Costco

First it was books, then it was fruit, and now it’s, paper towels? Amazon could soon be diversifying its growing retail empire to target the kinds of things people frequently buy at warehouse club stores as part of a new “Pantry” service that will launch next year.

Amazon.com is working on a new business called Pantry that will help it expand further into the giant consumer package goods market and take on warehouse club stores Costco and Wal-Mart’s Sam’s Club, according to three people familiar with the effort.