By Martin Heubel, Amazon Strategy Consultant at Consulterce
If you’ve been paying attention, you’ll have noticed that Amazon is focusing on Everyday Essentials right now.
Whether it’s Baby, Food, Beauty, or Health & Personal Care:
Amazon wants you to buy single packs at low prices.
During a recent shareholder Q&A, CEO Andy Jassy shared his thoughts on Amazon’s Grocery business.
Some noteworthy quotes:
“I’m very bullish about grocery.”
“I think some folks don’t realise how large a grocery business Amazon has today.”
“If you look at […] consumables, canned goods, pharmaceutical items, beauty products, really, everyday essentials […], we did over $100bn gross sales […] on these items last year alone.”
What it means:
- Amazon’s $100bn in grocery sales may not yet compare to Walmart’s $264bn, but it’s getting close.
- Physical stores (Fresh, Whole Foods) remain key in Amazon’s retail playbook. Despite many iterations, they’re here to stay.
- Expanding assortment and faster delivery speeds are Jassy’s focus, as they deepen Amazon’s moat against competitors and new market entrants.
- With shoppers becoming more price-sensitive and retailers raising prices, everyday essentials are Amazon’s response to secure volume.
For further information and support, contact Martin Heubel here
