Amazon pulls more grocery spending from traditional supermarkets

The news: Amazon’s grocery share is expanding as it doubles down on affordability and convenience.

  • The number of active customers buying perishables each month has grown over 50% since the start of the year, CEO Andy Jassy said on the company’s Q2 earnings call.
  • Fresh groceries now account for six of the top 20 bestsellers on Amazon’s site.
  • Whole Foods Markets’ growth is “significantly outpacing” comparable grocers in the geographies where it operates, thanks to lower prices, more private label products, and affordability-focused marketing.

By the numbers: Jassy said the launch of same-day perishables delivery is driving growth after several failed initiatives.

  • Amazon said grocery and everyday essentials grew “meaningfully faster” than the rest of its business in Q2, which is particularly notable since overall net sales increased 20% during the quarter.
  • Shoppers who add perishables to their same-day deliveries on average purchase over three times as many units per order.
  • Over half of US digital food and beverage buyers (51%) reported purchasing a food or beverage product from Amazon or Whole Foods in the past 30 days, according to a May Bizrate Insights and EMARKETER survey, showing the retailer’s growing hold on digital grocery sales.

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