Amazon’s Fresh Refresh

Amazon has struggled to penetrate the physical grocery format over the last few years closing several stores. But they are not giving up! They are working to adjust their approach and model by refreshing two stores in Chicagoland. “On grocery, we’re pleased with the progress we’re making there,” said Andy Jassy, Amazon’s CEO. The results from the refresh are favorable according to a company survey of shoppers in Chicago. Amazon now looks to do the same in California, in Pasadena, Woodland Hills and Irvine. At a fourth quarter earnings call, Jassey continued, “If you want to serve as many grocery needs as we do, you have to have a mass physical presence. That’s what we’ve been trying to do with Fresh over several years”.

Adjustments include stocking more than 2,000 private label brands that include Whole Foods Market’s 365 Brand. They are also working to better leverage logistics capabilities between their grocery segments that include Whole Food Market. Amazon enjoyed a great forth quarter in 2023 and they are not taking their foot off the pedal in their physical grocery initiative.