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Amazon was so successful last year that Words almost fail me. Except in one area.
Sales at Amazon’s stores, mostly at Whole Foods grocery chain, were down 15 percent in the first three months of this year compared to the same period in 2020. These sales have now been declining for a year.
Amazon’s numbers have gaping holes that make it difficult to know exactly what is happening. But we can say that something doesn’t quite work.
Almost four years after Amazon agreed to a huge one Deal to buy whole foods and a year after a pandemic that played out the strengths of the tech giant, it’s worth asking two questions: Is Amazon losing food? And why did one of the most ambitious and inventive companies in the world Most of the time he was more of a follower than a leader in one of the largest spending categories for Americans?
What Amazon does about groceries matters to all Americans, even if we never buy milk and bananas from the company. Amazon consumers and competitors see it as a pioneer in innovation. But that’s not the case with food – at least not yet.
Let me come back to the falling sales in Amazon’s physical stores. The problem is, those numbers don’t include the grocery orders people place online and then pick up or have delivered in stores. Those sales have skyrocketed for Amazon and its competitors during the pandemic.
An Amazon spokesperson told me that the sum total of all the ways people shop at Whole Foods, including ordering online for pickup or delivery, shows that the company’s sales have increased. However, Amazon doesn’t give any details, which is often a sign that the numbers aren’t amazing. When Amazon – like Walmart and Target – sells a lot more groceries than it did before the pandemic – the company is unusually quiet.
So I wonder if Walmart’s grocery sales, which rose 9 percent for the year ended January 31, are growing faster than Amazon’s. That shouldn’t happen, as both Walmart’s mammoth lead over Amazon when it comes to selling groceries.
I’ll also say something that might sound crazy after a year of manic click shopping: grocery stores in real life are still important. Much. And that’s not a good sign for Amazon.
Sucharita Kodali, who studies shopping and consumer behavior for research firm Forrester, recently looked at our habits changed by the pandemic and found that many people were eager to roam the aisles of grocery stores again.
Yes, many people have tried to deliver groceries or Roadside pickups in shops for the first time during the pandemic and Some of these habits persist. However, Kodali wrote in a recent report, “The vast majority of grocery sales in the United States are and will continue to be in stores.”
Shops are familiar with navigation and some people are nostalgic for their old habits, Kodali told me. According to Forrester’s analysis, botched orders, high prices, or other issues with shopping for groceries online have discouraged many people.
Many companies, including Amazon, Target, and Walmart, also pick lots of items off regular store shelves for online grocery orders. Grocery sellers need their stores for both in-person and virtual shopping.
Let’s see what happens to Amazon in the coming months. Those in-store sales could rebound if townspeople return near the Whole Foods stores and office workers get ready-made meals again.
But no matter what Amazon blah whole foods sales are worth paying attention to. They’re another sign that in 15 years of Amazon’s mostly disjointed and unsuccessful strategy when it comes to food, something is wrong.
Walmart, the regional chain Krogerand startups like Instacart and Over try clever ideas to shake up the food industry. Besides its as yet unproven technology too Skip the checkouts in storesAmazon’s big step in groceries appears to be open a new chain in addition to whole foods.
I am still interested in what Amazon is doing regarding groceries. But for now, maybe we should pay less attention to Amazon in this area until everything it does turns out to be working.
Before we go …
Mr. Beast Inc .: Jimmy Donaldson, the YouTube star named Mr. Beast, is trying to build a business empire that includes investing in other online personalities and gives his name to a burger chain. My colleague Taylor Lorenz wrote on the behind-the-scenes argument in Mr. Beast’s inner circle and whether people with big online followers can also build sustainable businesses.
Self-help and chaos in India: Indians using social media to find hospital beds and medical care during the country’s coronavirus surge have one problem: they are overwhelmed by a deluge of unconfirmed informationand some of them want social media companies to help, reported Bloomberg News. The rest of the world also wrote about online support groups in India questioned by the police or closed.
Lumberjack TikTok? There is a bubble. In sawn timber. Really. And that inspired Wood-related memes and turned a Canadian Lumberjack into a Lumberjack TikTok Star, Wrote Vox.
Here is Becky the hedgehog takes a bath and love it. (In my opinion.)
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