Amazon Sees Growth in Grocery

Amazon had a healthy fourth quarter, showing a 13% sales increase year-over-year. With this, Amazon CEO Andy Jassy, sees the benefit to the continued focus and growth of the company’s grocery business which has been in process for almost 20 years. Their unique format provides over three million items compared to an average grocery store of around 30,000 items. Mostly focused on nonperishable and multi-serve options, their CEO sees opportunity in expanding their offerings through more brick-and-mortar locations, outside of Whole Foods Market. Andy Jassy wrote, “Whole Foods is on an encouraging path, but to have a larger impact on physical grocery, we must find a mass grocery format that we believe is worth expanding broadly. Amazon Fresh is the brand we’ve been experimenting with for a few years, and we’re working hard to identify and build the right mass grocery format for Amazon scale.”

While we have seen Amazon Fresh/Go operations slowed, this is due to “external circumstances”, and Amazon leaders are continuing to think of creative and innovative go to market strategies for their Amazon Fresh business. They are not giving up on these locations, as Amazon leaders stated “We think grocery is a really important and strategic area for us. It’s a very large market segment, and there’s a lot of frequency in how consumers shop for grocery,”.