Amazon's fresh grocery business is strengthening, helping it to snatch market share from supermarkets
Businessinsider
51m ago
Ai Focus
According to Nielsen IQ data, after Amazon expanded its same-day fresh delivery services in the United States, sales of seafood, dairy products, and fresh fruits and vegetables increased significantly, and the company gained market share in the food category.
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Amazon is continuously expanding its advantages in the grocery business with products such as fresh shrimp and berries.

According to market research firm Nielsen IQ, about a year after expanding its fresh grocery delivery service to thousands of cities and towns in the United States, Amazon's sales of perishable groceries are growing rapidly, and it is taking market share from traditional retailers.

Nielson IQ data indicates that during the period from June to August, sales of groceries such as fresh produce, dairy products, and fresh fruits and vegetables on Amazon Shanghai increased several times over. Nielsen also found that throughout the year up until late August, as traditional grocery stores lost market share, Amazon's market share in the food category rose.

Nielsen wrote in the report: 'Consumers are increasingly accepting Amazon in categories that have historically been one of the biggest barriers to online grocery shopping.'

For many years, Amazon has been attempting to break into the grocery market, although it has not achieved decisive success in this category as it has in the fields of books or cloud computing. The company acquired Whole Foods Market, opened and then closed another offline grocery chain, and launched a range of its own-branded groceries, among other things.

Nielson IQ data indicates that Amazon's recent efforts to deliver fresh groceries quickly in most regions of the United States are yielding some results in the highly competitive grocery market.

According to Nielsen IQ, among consumers who purchase fresh food on Amazon, many come from families with an annual income of over $100,000, and they tend to be older in age. They are also frequent users of Amazon, with a higher number of orders and larger consumption amounts on the platform compared to ordinary users.

This means that fresh groceries, as one of the most frequently purchased items by American consumers, could be a "potentially important lever to increase the purchase frequency and overall spending of Amazon users," the report states.

To maintain this momentum, Amazon still has to face strong competitors. One of them is Walmart, which already provides same-day grocery delivery services using its stores and its own crowd-sourced delivery team.

Business Insider reported in September that Amazon is considering opening around 1,000 same-day fulfillment centers across the United States by 2031. An analyst stated that this would create a similar advantage to Walmart, which is to have more fulfillment centers located closer to more customers.

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