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The Grocer Talking Retail

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Amazon will soon be ‘unstoppable force’ in grocery

Time is running out before Amazon puts its full might into grocery and becomes an unstoppable force for rivals, a former e-commerce head for the company has warned.

Jon Reily, who was Amazon’s head of e-commerce user experience and design from 2012 to 2015, said grocers should be “on notice” following the tech giant’s newly posted second quarter results.

Revenue rose 20% to $63.4bn following the expansion of one-day Prime delivery in the US, but the move squeezed profits to lower than Wall Street’s earnings estimate.

“With a predicted 120 million Prime members in the US alone by the end of the year, and 135 million by the end of 2022, Amazon’s dominance over rivals Walmart, Target, Kroger and other grocers in the space may be unstoppable at this point,” he said.

“It’s quickly becoming a question of when, not if, Amazon will put the full force of its power behind dominating the grocery space like it does in the e-commerce space.

Source: The Grocer Jul 30 | In-store Analysis | Innovation | What's Trending