Blog: Can Amazon deliver on groceries?

Catherine Sleep | 19 July 2006

For some time Amazon has been known as the world’s largest bookseller, but it is well on its way to becoming the world’s largest purveyor of anything and everything, including, most recently, groceries. Can it succeed where others have failed?

The UK has arguably the most developed online grocery retail market in the world, with massively strong private label store brands, and it is hard to see Amazon successively taking on the leading supermarkets here.

But the US is different: there is no outright market leader, with various chains performing strongly in different regions. Amazon is to concentrate on non-perishables, which saves it from suddenly having to acquire expertise in the technical challenges of the chill chain.

Moreover, the company has leveraged the expertise of food distributors who bring complementary expertise to the table. Natural and organic foods retailer Wild Oats sells many of its private-label products on the Amazon site, and many of the leading manufacturers who have signed up with Amazon already sell their goods through other online sites.

Finally, customers are comfortable buying other things from Amazon, so why not non-perishable food?

The one serious stumbling block that I can see is that consumers may not be prepared to divide their grocery shopping into two parts: the non-perishables that they can buy on Amazon, and the perishables that will need to be sourced elsewhere. The other potential problem is that many of the products are only available in multipacks. But then, that is exactly when you want them delivered to your door, so it may prove a boon for the majority of shoppers.

Amazon grocery site


BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

BLOG

Premier Foods pension news offers cheer but challenges remain

Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....

BLOG

Another reshuffling of pack at Hain Celestial

Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....

BLOG

FrieslandCampina looking to sell final non-dairy asset

FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....

just-food homepage



Forgot your password?