Amazon exploring best format for physical grocery
Jassy in the letter called Whole Foods Market, which is focused on natural, healthy and organic foods and specialty items, “large and growing” and on an “encouraging path.” Still, Jassy said Amazon needed to search for another format to more broadly scale its ambitions in the mass grocery category.
Jassy noted Amazon’s efforts in brick-and-mortar grocery during the past several years had been centered around its Amazon Fresh concept, which focuses on reducing friction for customers by offering advanced technology like its Just Walk Out. But Amazon in February said it would close underperforming Fresh stores, as well as some Amazon Go convenience store locations. Amazon currently operates 44 Fresh stores, according to the retailer.
“While we’re pleased with the size and growth of our grocery business, we aspire to serve more of our customers’ grocery needs than we do today,” Jassy said. “To do so, we need a broader physical store footprint given that most of the grocery shopping still happens in physical venues.”
Jassy added: “Grocery is a big growth opportunity for Amazon.”