Amazon.com (NASDAQ: AMZN) is embarking on a significant overhaul of its grocery business, including streamlining its e-commerce supermarkets, unveiling new automated warehouses, and even offering fresh grocery deliveries to customers that aren’t subscribed to Prime.
Under the leadership of former Tesco Plc executive Tony Hoggett, the company first plans to combine the different online supermarket offerings from Whole Foods, Amazon Fresh, and Amazon.com into one unified e-commerce shopping cart. This move— which will be implemented over the next several months as Hoggett unveiled to Bloomberg, seeks to create a more seamless shopping experience for customers, who have previously had to make separate orders and checkouts for various products from Amazon’s different outlets.
Then, as early as this month, Amazon will expand its fresh-food delivery service to customers who aren’t Prime subscribers— a first for the company. Initially, this service will roll out across several major US metropolitan areas before eventually becoming standard across the country, with delivery fees ranging from $7.95 to $13.95— approximately $4 more than what Prime subscribers are typically charged.
On the physical store front, Amazon is refashioning its Fresh stores, aiming to make them more appealing with additions such as Krispy Kreme stands, a more diverse inventory, and bright colors. These changes come in response to criticism that the chain’s current design feels “soulless,” and in effort to gain more market share from other leading grocery chains such as Walmart and Kroger.
In 2020, the launch of Amazon Fresh seemed to signal a further expansion in the physical store realm. However, with a change in leadership, as Andy Jassy succeeded Jeff Bezos as CEO, the company reconsidered its strategy, leading to the closure of more than 60 brick-and-mortar locations.
Now, with a fresh focus, Amazon is putting emphasis on a traditional retail aesthetic rather than technological gimmicks in their stores. The company is concentrating on key areas like Illinois, Southern California, Northern Virginia, and Washington state, with plans to reintroduce renovated stores and continue with cautious expansion.
Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
