Fresh Food Drives All Sales at Amazon

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AmazonFresh the grocery delivery service of Amazon is garnering attention from all retailers as Amazon reported that it is seeing sales increases in all other lines of merchandise as a result of its grocery delivery service.  Has Amazon found its last mile solutions in fresh food? Will AmazonSpotlight that delivers restaurant hot Ready-2-Eat fresh prepared food be its next success?

Thomas Szkutak Amazons Chief Financial Officer said during the company's third-quarter earnings call, that Amazon was happy with AmazonFresh's latest entry into the Los Angeles market.  In addition Szkutak stated "It's very, very early in LA, but what we see so far we like. We're adding a lot of selection there on behalf of customers,"

Foodservice Solutions® Grocerant Guru™ Steven Johnson thinks that everyone in retail should paying attention to Amazon for when asked if the company was selling more non-grocery items as a result of the more frequent deliveries to AmazonFresh customers, Szkutak simply replied, "Yes."

Amazon has been working on and with fresh food delivery for the past five years and is has been testing AmazonSpotlight for only one year.  All food retailers should be aware, prepared, and focused on new competition from non-traditional fresh food retailers.  Here is another example other than Amazon’s success, Walgreens is finding with fresh prepared food in it urban locations.

Today, Amazon in the LA area is on track and preparing for customers that order fresh groceries as well as other merchandise that they will be able to receive the items the same day for most items or the next.  If Amazon can do that today do you think that other non-traditional retailers won’t at least look at food?

Outside Eyes for Inside Results Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy. Visit: www.FoodserviceSolutions.us Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant