“They are doubling down on something, on a trend … that’s saying that grocery buying is moving more online,” Hitha Herzog, H Squared Research chief research officer, told Yahoo Finance over the phone.
She added that consumer retention is increasingly hinging on customers’ ability to get orders delivered rapidly and with a level of quality control applied.
Jassy echoed this idea previously, saying that the tradition of the weekly grocery stock-up is changing. “We’re on to something very significant with what we’re doing with perishables from our same-day facilities,” he said.
One of the largest competitors in the space is Walmart, which has a grocery business that accounts for 60% of its US sales and has doubled down on convenience and same-day delivery with its Walmart+ membership model.
Amazon is set to report earnings after market close on Feb. 5.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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