Amazon to Double Down on Brick and Mortar Stores

Amazon has announced that it will be investing heavily in its physical grocery store business, following a brief pause in opening new Amazon Fresh locations due to external factors. CEO Andy Jassy stated that Amazon will be focusing on its brick-and-mortar grocery business, which is still in its early stages compared to more established chains, and that the company is working to enhance its Amazon Fresh operation by tinkering with the selection, price points and checkout formats. Some of those pricing adjustment will come at a cost to the consumer by increasing free delivery from the current $35 threshold to $135.

As CEO of Amazon Andy Jassy 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. And we also believe that over time, grocery is going to be omnichannel,” he said at the time. “I think that we have a pretty significant-sized grocery business. I think people sometimes don’t realize that and that we’ve been building for a long time. We’re working hard at it.” Amazon’s Whole Foods Market banner is continuing to open new locations as well. In 2023, they have announced new stores in Bozeman Montana and New York City.