Fintech & Ecommerce

Amazon Reportedly Overhauls Its Grocery Operations to Compete With Walmart

The media reported that Amazon is currently reviewing its grocery operations to improve competitiveness against Walmart.

Amazon Reportedly Overhauls Its Grocery Operations to Compete With Walmart

According to the information currently available to the media, the e-commerce giant’s modernization plan in the context of grocery operations provides for the renewal of stores, the launch of a pilot project on warehouses automation, and solutions for the delivery of fresh products to consumers who are not members of the Prime corporate community.

The company also intends to combine its Whole Foods e-commerce grocery offerings, Amazon Fresh supermarket chain, and its main website into a single online shopping cart.

Tony Hoggett, the executive director of the firm who is responsible for updating the grocery store, says that the modernization plan is part of a strategy to transform Amazon from a niche grocer into a shopping space. He noted that the company takes grocery stores seriously. According to him, the e-commerce giant strives to establish strong relationships with customers.

The company is starting to invite consumers without a Prime subscription in a dozen cities in the United States to order products online at Amazon Fresh stores and warehouses. The e-commerce giant is committed to making the relevant offer available throughout the United States by the end of this year. The company also intends to add Whole Foods and other grocers to this commercial solution.

In April, Amazon CEO Andy Jassy, during an earnings call, announced the firm’s desire for a mass product offering. He also noted that this effort is what the company is working on with the Fresh brand. At the same time, Andy Jassy reported on the availability of a set of experiments, ideas, and work formats that are being implemented in dozens of ordinary mass-market stores that are part of the company’s ownership structure.

Based on the current plans of the e-commerce giant, the April statement can be described as a hint at the concept of activation in the grocery sector.

At the same time, experts say that this year it is clear that the company has lost confidence in the brand Fresh. The media reports that the stores intended for this brand are empty.

Industry research suggests that grocery shopping is an area in which Amazon usually loses ground to its competitor Walmart. Recent Walmart Sales + Week and Amazon Prime Day confirmed this. Walmart shoppers’ spending twice exceeded that of the e-commerce giant consumers.

At the same time, Amazon will benefit from a growth in the number of consumers of e-commerce products.

As we have reported earlier, Amazon to Double Same-Day Delivery Facilities.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.