Amazon stops opening new fresh grocery stores while it conducts research

Given that many conventional grocery stores expanded quickly during the pandemic, Amazon halted its expansion to launch Amazon Fresh grocery stores as the company assessed how to differentiate itself from its rivals. According to a report from Reuters, Chief Executive Officer Andy Jassy appeared during Amazon's quarterly results call and declared that they would halt the growth of Fresh supermarkets and cashier-less convenience stores in order to assess and determine the best strategy. Amazon needs to find its own destruction format that will be profitable before beginning the major expansion. With the closed acquisition of Whole Foods Market in 2017 for $13.7 billion, the retail company has been striving (and struggling) to dominate the supermarket sector. Jassy stated that Whole Foods is expanding and continues to be the leader in premium and organic grocery, despite acknowledging that the company's mass-appeal offering needs to be worked out. [caption id="" align="aligncenter" width="1540"] Image credit- Supermarket News[/caption] He emphasized the benefits of packaged food, paper goods, pet supplies, and personal care products. However, thanks to these products, Amazon is losing market share in the area of likable goods that consumers frequently prefer. Since it introduced a line of cashier-less stores and supermarket chains aimed at conventional shoppers, the company has also been expanding its offerings as it became more complex. As of right now, 28 Amazon Go convenience stores and a number of Fresh Grocery Stores are run by Amazon, according to the reports. Despite acknowledging setbacks, the CEO declared that he was satisfied with Whole Foods' progress in terms of profitability over the previous year. It's a sizable business, and it's a good business for us, he continued. [caption id="" align="aligncenter" width="1486"] Image credit- About Amazon[/caption] Amazon still faces fierce competition in the market from companies like Kroger Co. and Walmart Inc. despite the retail company's significant business from packaged food and other goods in online shopping. In perishables, the company has yet to capture a sizable portion of the market. According to a report, UBS analysts estimated that Amazon accounted for about 4% of the American grocery market. https://www.gadgetany.com/news/for-free-delivery-amazon-fresh-will-soon-require-a-minimum-order-of-150/ However, according to Wedbush Securities Analyst Michael Pachter, Amazon is to blame because the retail giant's recent expansions and the fact that it introduced consumers to online shopping decades ago are to blame. The analyst went on to say that the retail industry is competitive and that a company cannot simply brand a novel idea and compete with long-standing retailers.