WANT TO LEARN MORE? DOWNLOAD OUR POV TO FIND OUT ABOUT:
- The current state of transformation of grocery
- Common executional challenges
- Best practices for building teams that succeed
There was speculation about what Amazon would do after it acquired Whole Foods. Within the first week of the acquisition it had seen $500,000 worth of sales from Whole Food items. Even with stock issues, their sales went back up even four weeks in. In November of 2017 AmazonFresh was pulled in some locations while Prime Now was expanding in others. At the same time, the grocery selection for Prime Now was increasing, incorporating Whole Foods items (which was also put on Amazon.com, AmazonFresh, and Prime Pantry as well).
Before even the acquisition of Whole Foods occured, there was a survey of Prime Members by Morgan Stanley that showed that grocery orders using Prime Now were up, with 48% of respondents using the service to order food. It showed that people were more likely to buy groceries than other e-commerce offerings. While no comments were made when these changes were made, the industry saw where this was leading.
Fastforward to the beginning of January 2018 and we come to find out that Amazon began to offer over 10,000 grocery items on Prime Now, specifically with free one-day and same-day shipping. Along with this happening in the new year, they also started a campaign in the UK called "New Year, New You" where for 10 pounds, they would get a grocery sample box and get a free 10 pound credit with the order.
Their highest increases Amazon isn't an outliar in this trend. In fact, it shows the necessity for grocery to go digital and why many larger companies are finally going that route. These include companies like Shipt and Instacart expanding their markets and increasing their revenue by partnering with grocers like Sprouts and Kroger.