Amazon plans to merge various e-commerce supermarkets, including Whole Foods Market, which it acquired for $13.7 billion in 2017, into one online shopping cart. Starting this month, it will offer Amazon Fresh delivery to non-Prime members in several major cities in the United States, with plans to expand nationwide by the end of the year.
Amazon is going to be serious about offline. Amazon may not have overhauled its food and grocery business like this since its biggest acquisition in company history, the $13.7 billion acquisition of Whole Foods in 2017. On Wednesday, August 2, US Eastern Time, the media said Amazon would launch the above-mentioned grocery business reform in the next few weeks and months, which would involve renovating retail stores, testing new highly automated warehouses, and providing fresh food distribution to customers who did not join the Prime membership subscription service for the first time. According to the media, Amazon also plans to merge various e-commerce supermarkets, including Whole Foods, Amazon Fresh, and Amazon.com, into an online shopping cart for customers. The media also mentioned that Amazon launched daily distribution for non-Prime members in more than a dozen major U.S. cities such as San Francisco, Boston and Austin, Texas, earlier this month. In the past, only Prime members who paid an annual fee of US $139 could order groceries in Amazon Fresh stores and warehouses. Now, ordinary customers can also order. If the total order amount is less than US $50, Amazon will charge US $13.95 for shipping, US $10.95 for shipping if the order is between US $50 and US $100, and US $7.95 for shipping if the order exceeds US $100. According to media reports, Amazon plans to expand the scope of the above-mentioned delivery services to the United States by the end of this year, and eventually include Whole Foods Supermarkets and other physical stores that operate day-to-day miscellaneous. The media also said that Amazon has appointed a group of executives from traditional retailers to help implement the reform, led by Tony Hoggett, who was once an executive at Tesco, Britain's largest supermarket chain. Public information shows that before joining Amazon, Hoggett worked for Tesco for 31 years, including Tesco's chief operating officer from July 2018 to May 2021 and Tesco's chief strategy and innovation officer from April 2021 to July 2021. From January 2022 to present, he has served as Senior Vice President of Amazon's global physical stores and professional distribution. Although Amazon's e-commerce business dominates in the United States, the offline grocery market is no match for the two giants Wal-Mart and Kroger. This reform is the latest move by Amazon to compete for more offline share. UBS analysts estimate that the U.S. grocery market is worth $1.5 trillion, with Wal-Mart alone accounting for 22.3 percent of the market and Kroger accounting for 9.9 percent, far more than Costco, which ranks third. Costco and the next Albertsons had 5.8 percent and 5.2 percent, respectively, and Amazon's Whole Foods came in fifth with 4.4 percent. In February this year, Wall Street News Article mentioned Amazon's plan to push into the line. The article pointed out that analysts believe that the acquisition of Whole Foods Supermarket has failed to lay a good foundation for Amazon's daily grocery strategy. Amazon's plan to open more than 200 fresh food stores has only been implemented by a few dozen, and some of the US stores originally scheduled to open are still vacant. In February, Amazon revealed that it had suspended Amazon Fresh's expansion in the fourth quarter of last year and closed some stores with "low growth potential", thus accruing an impairment charge of US $0.72 billion in the current quarter. However, Amazon CEO Andy Jassy said in February that Amazon was ready to make a big push into physical stores, and that a series of previous expansion missteps were due to the unusual phenomenon during the new crown epidemic. He said that Amazon's physical stores are still in the early stages and will "make a big play" in this area this year ".