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Amazon's Grocery Push Keeps Stumbling After Whole Foods Purchase (bloomberg.com)

Posted by BeauHD on from the grocery-shopping-activity dept.

Bloomberg reports that Amazon is struggling in the $840 billion grocery market, more than a year after it spoked the industry with the $13.7 billion acquisition of Whole Foods last year. "The number of Amazon Prime members who shop for groceries at least once a month declined in 2018 compared with 2017, according to the results of an annual consumer survey released Wednesday by UBS analysts," the report says. "The drop was surprising given the company's Whole Foods investment and expansion of two hour delivery service Prime Now, the analysts wrote in a note to investors." From the report: A separate study by research firm Brick Meets Click found that households using grocery delivery and pickup services from physical retailers spend about $200 per month and place orders more frequently than Amazon grocery shoppers, who spend $74 a month. The number of households with access to online grocery delivery and pickup options will reach 90 percent next year, up from 69 percent in 2017, thanks to big investments by food retailers of all sizes, the report states.

4 of 132 comments (clear)

  1. I need to feel those melons by fluffernutter · · Score: 5, Interesting

    I just need to pick out my own groceries. Furthermore, grocery shopping is not at all unpleasant, and smart stores have interesting samples etc. Furthermore, the best stuff comes from the farmer's market.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:I need to feel those melons by cascadingstylesheet · · Score: 4, Interesting

      Hmm, a paragraph disappeared there. Restored below ...

      Wow, really?

      I've used Amazon for ages (since they were just books, lol), and while I've rarely needed service, when I have, they've always impressed me as being super helpful and willing to just refund or replace things quickly.

      To the point that I'm willing to take more chances with them than others, since I know they'll make it right if something goes wrong.

  2. how by phantomfive · · Score: 4, Interesting

    How is this profitable? Are the major grocery stores doing this at a huge loss? It seems like delivery should add a hefty fee on top of the grocery bill.

    --
    "First they came for the slanderers and i said nothing."
  3. Here's a way in by John.Banister · · Score: 4, Interesting

    Delivery for high quality perishable products is hard. It shouldn't be the initial focus. One thing Amazon has is the customer reviews. I just searched for customer reviews of local produce and farmer's markets, and most of the front page links were to TripAdvisor with a few also to Yelp. So, here's what Amazon could do...

    Free listings for non-taxable food where the delivery method is customer pick-up in a store smaller than 5000 sq ft, provided that the vendor sells at the advertised price, giving customers who bring an "I saw it on Amazon" QR code generated by the product page a 5% discount, and the code verification gives Amazon a report of those sales (which can allow the customer a "verified purchase" notation if they review the product). Vendors who rack up lots of sales with positive reviews are targets for deals that make their product carried by the nearest Whole Foods.

    Local produce vendors get visibility.
    Amazon gets leads for popular local products to carry in their stores and gets to condition shoppers to check their site when looking for tasty local food.
    Customers get to learn where to obtain tasty locally produced food via an easy search, with reviews from other customers.