Produce boosts AmazonFresh sales to $10M in Q1
- One Click Retail released a report looking at Amazon’s grocery performance and noted AmazonFresh sales increased to $10 million for Q1 this year, according to Supermarket News.
- Amazon’s total grocery sales were estimated at $350 million for the quarter, an increase of 30% year-over-year.
- The top sales categories for AmazonFresh were produce and refrigerated dairy products.
One Click Retail’s report showed that Amazon’s grocery sales growth is outpacing the grocery industry as a whole 15-to-1.
That figure is alarming to brick-and-mortar stores who are continuing to see Amazon in its many forms as a threat to the industry. The e-tailer seems to be making inroads on all grocery channels through Amazon Fresh, Amazon PrimeNow, Amazon Go or the new AmazonFresh Pickup.
These new numbers show projections from the Food Marketing Institute and Nielsen are starting to take shape: Approximately 20% of all grocery spending — a total of $100 billion — is expected to come from online shoppers by 2025.
With its entry into alcohol delivery, many analysts expect AmazonFresh to grab more of the grocery market in the year ahead and increase its sales going forward.
While the report shows how Amazon is continuing to make inroads into grocery, it also seems to show people are starting to want to buy produce online. While online grocery has continued to expand, shoppers have been reluctant to leave their brick-and-mortar store produce departments behind, wanting to be able to touch, smell and feel the fruits and vegetables they purchase. This shift in consumer behavior presents an opportunity to traditional grocers — especially ones that specialize in produce — to ramp up online options and take back market share from the e-tailer.
- Supermarket News Amazon Fresh sales hit $10M in Q1
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