Amazon turns grocery into gold
Sales at Amazon Fresh grew 35% year over year to $135 million in just the last four months of 2017, aided by Amazon's acquisition of Whole Foods last summer.
According to The Wall Street Journal, top selling items included organic baby spinach, shredded Parmesan cheese, organic riced cauliflower, unsalted butter and smokehouse bacon, an analysis by One Click Retail found.
Business strategy consultant Brittain Ladd told Fox News Business that “Amazon will be working on expanding their grocery ecosystem." Ladd says Amazon has several potential options for achieving this goal, but one of the more interesting ones is through acquisitions.
“One of the retailers that stood out the most in the research was the possibility of Amazon actually acquiring Target, opening Whole Foods markets inside Target stores, and then taking a look again at the map and balancing where they need additional stores. According to the estimation of the model it would be anywhere between 750 to 1,000 additional stores,” Ladd told Fox.
In November, Amazon stopped its Fresh delivery service in parts of New York, New Jersey, Pennsylvania, Delaware, Maryland and California, and it has yet to comment on why it did so.
At the same time, Amazon is opening new Prime Now hubs in major cities. The service is now available in more than 30 cities and towns, and its food selection has been greatly expanded as it incorporates Whole Foods' assortment of products, according to Business Insider.