Amazon’s Grocery Push Gains Real Momentum on Friday
Amazon grocery push gains real momentum as its share climbs to 4% in the past year, driven by expanded online perishables and same‑day delivery.
Amazon’s grocery share rose to 4% in the 12‑month period ending June 30, according to data from Numerator, marking the biggest gain among the major grocers tracked.
Growth driven by online perishables
The increase follows a shift in strategy that has seen the retailer lean heavily on e‑commerce rather than expanding its brick‑and‑mortar footprint. After closing its Fresh and Go stores, it added perishable items to its same‑day delivery service across multiple U.S. markets last summer.
It also broadened fresh‑grocery availability through the Amazon Now rapid‑delivery program.
CEO Andy Jassy highlighted the performance of the same‑day perishables offering during the latest earnings call, noting that 90% of the top ten best‑selling items in cities where the service operates are perishable. Monthly active customers purchasing perishables have risen 50% since the start of the year.
“We’ve tried lots of experiments over the last few years … but we have finally found something that is a real needle mover for us in offering perishables in our same‑day facilities,” Jassy said.
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Amazon’s focus on convenience targets small, fill‑in‑shop orders that many shoppers now prioritize. Other grocers often find it costly to serve such orders online because of high fees and the logistics of picking items inside physical stores.
Challenges ahead for Amazon
While the share gain is notable, analysts caution that the growth may be short‑lived if the company cannot increase the size of grocery baskets.
Its limited network of physical stores—aside from Whole Foods—constrains its ability to compete with rivals that have extensive store footprints.
The broader market remains dominated by Costco and Walmart, which have captured most of the recent share gains in grocery. A modest 0.6‑percentage‑point increase reflects a gradual, rather than explosive, shift toward online grocery ordering.
Future sustainability will depend on how effectively the retailer can scale its delivery infrastructure and attract shoppers to purchase more than just a few items per order.
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One possible scenario is that the rapid‑delivery model could encourage consumers to treat grocery shopping as an on‑demand service, similar to meals from food‑delivery apps, gradually reshaping purchase habits.
If the cost of delivering fresh items remains high, the company may need to balance price competitiveness with the convenience it touts.
Industry response
Other grocery players are pursuing different tactics. Albertsons announced a partnership with Stream to provide its employees with financial‑wellness tools, including early wage access and budgeting resources.
Heinen’s is expanding its use of Afresh’s AI‑driven inventory system to better estimate end‑of‑day stock levels across fresh departments, aiming to reduce waste.
