- During its earnings call, Amazon.Com, Inc AMZN CEO Andy Jassy disclosed halting the expansion of its line of Amazon Fresh grocery stores to evaluate how to make the chain more appealing versus competitors.
- Jassy decided not to expand physical Fresh stores pending the evaluation. "We're optimistic that we're going to find that in 2023," and grow more quickly, he said.
- Amazon raised focus on Amazon Fresh grocery stores that grew to the dozens after a pandemic-driven rapid expansion.
- The stores marked Amazon's effort to compete with mainstream supermarkets and discounters in a way that a more premier Whole Foods cannot, analysts noted, Bloomberg reports.
- Some Fresh stores offer Amazon's cashier-less Just Walk Out technology. They also emphasize in-store pickup of online orders with a prominent customer-service counter.
- Jassy highlighted strengths in packaged food, paper products, pet, and personal care items but acknowledged the company's inadequate market share in perishable goods that shoppers often like to eyeball in person.
- Last week Amazon shared plans to start charging for most grocery deliveries, rolling back a previous offer of free delivery for Prime members.
- Amazon reported fourth-quarter net sales of $149.2 billion, up 9% year-over-year, ahead of a Street estimate of $145.45 billion.
- The company reported fourth-quarter earnings per share of 3 cents, which came in shy of a Street estimate of 17 cents.
- Last November, Amazon shared plans to pare back on unprofitable businesses as it battled business slowdown and macro uncertainties.
- Price Action: AMZN shares traded lower by 4.89% at $107.30 in the premarket on the last check Friday.
- Photo via Wikimedia Commons
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