In a major press event in the past autumn, summit Amazon The executive stood on the stage in front of hundreds of journalists and criticized the largest retail competitor in the company.
In reference to the choice of Amazon.com huge products, the company’s plans to integrate the grocery are more closely in the main shopping experience, Amazon VP Anand Varadarajan is that the technology giant was building a copy of “Supercenter, which is already a shopping”, which is an inverted pits in Wal MartInventor of the American Supercenter model and strength in the grocery market as well.
“The average consumer visits are between four and five different groceries divisions each month.” What the Amazon was doing, as the CEO claimed, to create one store that all customers yearn for. The clear inclusion was that Wall Mart, the option to sell historical retail, did not fulfill the promise.
On Wednesday, Amazon announced progress about what you think is a task in that task: 1000 American cities from shopping on the same day The ability where customers can buy fresh and damaged groceries, along with extraordinary unusual goods with one request. The company says that the service should be available in 2,300 American cities by the end of 2025, which makes Amazon customers from Amazon requesting milk and fruits along with batteries or camera – in one delivery that reaches that day on the same day. The company said that such a request will not carry a delivery fee for the prime members as long as a total of $ 25 is at least in “most cities.” The requests below. This threshold will carry delivery fees worth $ 2.99. Amazon customers who are not PRIME will pay $ 12.99 delivery fee regardless of the volume of demand.
Walmart shares fell by more than 2 % on the news, threatening more than $ 15 billion from the market ceiling. The share of the grocery delivery company Instacart 11 % decreased.
“The reason for this advertisement is very important,” Scott Devit wrote in a research note on Wednesday. Grocery is the largest retail category and is still relatively incorrect by the Internet. “
actually.
In an interview with my book, The winner sells everything, About Amazon/Walmart Competition, the current CEO of Amazon Consumer Company, Doug Herington, explained the grocery category attractiveness. “Selling a book or television is great and very useful, (but) how many times I buy a book or a TV every week for the number of times I buy packed goods, or some toilet paper or some foods?”
In short, if Amazon is able to start making a real dent in the grocery delivery market, customers are likely to shop frequently in the Internet giant. In fact, the company previously said that this is the behavior it witnessed among customers in the test markets last year.
Mark Mahani from Evercore wrote about starting groceries on the same day in a research note for customers on Wednesday: “This deepens the participation of Amzn customers by enhancing the high -frequency category in the main ecosystem, increasing sticks and customer life value.” He said that the service could pose an InstaCart threat as well as a Walmart membership program on the same day, Walmart+.
A history of launch, axis and setbacks
The road to the grocery corridor was a long and sometimes rugged road for Amazon, with this week’s announcement, which determines the latest in a series of grocery -related release, axes and axes over the past two decades. For those who closely followed the company’s efforts in this field, Wednesday’s advertisement may feel like Diga Fu. Amazon has once provided a Prime service now that provided two hours delivery to a limited group of general goods, along with fresh and frozen grocery stores in about 100 US metro areas. It was stopped in 2021, when the company said at the time it was folded on the Amazon’s main shopping platform.
Amazon also provides a fresh grocery grocery service in Amazon, directed towards large grocery orders, which already started testing throughout 2007. The service has passed an endless business quality over the years as the leadership tried to achieve a balance between the price that is enough enough for customers while still supports the cost -based cost structure. Amazon also runs a series of dozens of Amazon fresh grocery stores, which have gone through stages of reduction and expansion itself.
Of course, Amazon did the largest grocery store in 2017 when it spent approximately $ 14 billion to acquire groceries of bricks and mortars, which is now more than 500 sites.
Amazon provides unlimited delivery of Amazon Fresh and Whole Foods at a cost of $ 9.99 per month in addition to basic membership fees.
Along the way, Amazon has looked in recent years to dispel the idea that it failed in the grocery space. In the autumn press event, Amazon executive official said, “What most people do not realize is that we already have huge grocery work on the Internet … Most of the choice today are things like stored elements and home commodities or what we call daily basic.”
On the last profit calls, Amazon executive officials, including CEO Andy Jassi, collected the correspondence that is considered “daily basic”, is already a major player in the area that is not damaged. Corporate leaders recently revealed that Amazon sold more than $ 100 billion from grocery and home stores, or every day, the basics in 2024, not calculating what was sold through its Fresh Fresh and Only Foods sections.
Now, with this last initiative, Amazon moves to the type of fresh damaged foods that customers really think when they hear the word “grocery”. She does this in some way, thanks to years of Reducing the cost under the headHe is finally sustainable.
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