The news: Amazon is having a coming-out party for its fast-growing grocery business.

The retailer is looking to build awareness and emphasize the value of Amazon Grocery with a new advertising campaign featuring Kathryn Hahn centered on the message “Spend Less on Your Groceries.” The initial spot features Hahn using Amazon Grocery to save time and money while keeping her kitchen stocked.

Amazon is also making grocery a focal point of its Labor Day sale, per Chain Store Age. A dedicated grocery section on its site and app will feature deals on cookout staples starting at $2, summer produce under $4, and grilling proteins under $10.

At the same time, the retailer is using grocery perks to reinforce the value of Prime across different membership segments.

• It recently expanded the 5% cash-back benefit for Prime for Young Adults to include grocery purchases through September 15.
• Prime Access members, a discounted tier available to government assistance recipients and income-verified customers, can receive a $5 monthly grocery credit from July through September. The credit is automatically applied at checkout on eligible everyday grocery orders of at least $25 on Amazon.com.

The context: Amazon says it generated $150 billion in grocery gross merchandise value (GMV), which it says makes it the second-largest grocer in the US. That figure spans nonperishables, Whole Foods Market, and its fast-growing perishables business, which has surged since Amazon began folding fresh groceries into same-day delivery in the middle of last year.

Its various offerings include Amazon Now, which delivers thousands of fresh groceries and household essentials in 30 minutes or less, same-day delivery of perishables, Whole Foods Market, and its smaller-format Daily Shop stores.

The results suggest those investments are paying off. Amazon said grocery and everyday essentials grew “meaningfully faster” than the rest of its business in Q2, which is notable since companywide net sales increased 20%. CEO Andy Jassy also said the number of active customers buying perishables each month has grown more than 50% since the start of the year, with fresh groceries now accounting for six of Amazon’s top 20 bestsellers.

Those grocery shoppers are particularly valuable. Customers who add perishables to same-day orders purchase more than three times as many units per order on average, giving Amazon a powerful incentive to turn occasional grocery purchases into a habit.