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Amazon predicts slower sales growth as Covid boost eases

Amazon has predicted slower sales growth in the third quarter as a boost from the Covid pandemic subsides.

Customers turned to Amazon and other online platforms during the Covid crisis, leading to record profits for the US giant. However, Amazon’s breakneck growth is beginning to level as customers start to return to bricks and mortar shops.

Revenue climbed 27% to $113bn (£81bn) in its second quarter, but this missed analysts’ expectations. Amazon shares fell more than 7% in after-hours trade.

Earlier in the Covid pandemic, Amazon posted record profits, signed up more than 200 million customers to its Prime service, and recruited more than 500,000 workers to keep up with surging demand.

But vaccine rollouts and easing of restrictions have led some consumers to venture out to stores, while also using click-and-collect services, in competition with the speedy delivery of online orders provided by Amazon and its peers.

Source: Jul 29 | In-store Analysis | What's Trending