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Amazon (AMZN) Boosts Grocery Efforts With Its Latest Plan
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Amazon (AMZN - Free Report) is firing on all cylinders to expand its footprint in the retail sector with its strengthening grocery business and growing physical presence. This is evident from its eye on Washington, DC’s Navy Yard for its new grocery store.
Reportedly, the company intends to open a 2,046-sq-ft store at 110 M St. SE, marking its first grocery store in DC’s Ward 8.
The company has applied for a full-service grocery license with the D.C. Alcoholic Beverage Regulation Administration.
Notably, the underlined store is expected to be an Amazon Go store.
We believe the latest move will aid Amazon in capitalizing on the growing momentum in in-store grocery shopping in the current phase of the pandemic, wherein the preference for offline shopping has increased, driven by solid vaccination drives.
Moreover, the most demanding Just Walk Out technology of Go stores will help the company to deliver enhanced grocery shopping experiences to customers, which, in turn, is expected to bolster customer traffic in the store.
The latest move of AMZN bodes well with its deepening focus on the grocery segment.
The company already operates six Amazon Fresh grocery stores in Greater Washington. Further, it has plans to open grocery stores in downtown DC, H Street NE, Dupont Circle, Potomac Yard, Baileys Crossroads, Gaithersburg and Silver Spring.
Apart from these, Amazon recently opened a 40,000-sq-ft Amazon Fresh grocery store at 7201 W. 24th St., North Riverside, IL, which is equipped with its cashierless technology.
The e-commerce giant is gearing up to expand its service, namely Amazon Fresh Marketplace, in the United States and a majority of locations in Europe this year.
The increasing number of Amazon Fresh stores, equipped with Just Walk Out technology across the United States and outside the country, remains a major positive.
The company’s expansion of its Fresh infrastructure in India remains noteworthy.
We believe that all these endeavors will boost the company’s prospects in the promising grocery retail market.
Deepening Retail Focus
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering its online and offline retail presence, boosting distribution channels, and accelerating delivery.
The increasing number of Amazon Fresh grocery stores across the United States is a major positive.
The growing base of Amazon Go, which is a cashierless store of the company, remains another positive. Notably, Amazon currently has more than 25 such stores.
The company’s intentions to expand its Whole Foods store network across the United States remain noteworthy.
Beside grocery store plans, Amazon recently opened its first clothing store, Amazon Style, in Glendale near Los Angeles, CA. The store leverages Machine Learning technology to offer an enhanced and smart shopping experience to customers by helping them find the items they are looking for.
An increasing number of Amazon 4-star stores, which stocks four-star or beyond-rated products from categories like kitchen appliances and other items, home stuff, toys, books, devices, consumer electronics, and games, remains a tailwind.
We note that deepening retail focus and expanding the physical presence of Amazon will continue to drive its physical stores’ sales growth, which, in turn, will aid its financial performance.
Notably, the company generated $4.6 billion of revenues from physical stores in first-quarter 2022. The figure was up 17% year over year.
Consequently, this will instill investor optimism in the stock, which is currently battered by rising inflationary pressure, intensifying competition, mounting expenses and a slowdown in online shopping activities.
Group 1 Automotive has lost 17.3% on a year-to-date basis. The long-term earnings growth rate for the GPI stock is currently projected at 14.19%. AutoNation has lost 2.6% over a year. The long-term earnings growth rate for the AN stock is currently projected at 24.74%.
Kroger has gained 6.1% on a year-to-date basis. The long-term earnings growth rate for the KR stock is currently projected at 11.27%.
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Amazon (AMZN) Boosts Grocery Efforts With Its Latest Plan
Amazon (AMZN - Free Report) is firing on all cylinders to expand its footprint in the retail sector with its strengthening grocery business and growing physical presence. This is evident from its eye on Washington, DC’s Navy Yard for its new grocery store.
Reportedly, the company intends to open a 2,046-sq-ft store at 110 M St. SE, marking its first grocery store in DC’s Ward 8.
The company has applied for a full-service grocery license with the D.C. Alcoholic Beverage Regulation Administration.
Notably, the underlined store is expected to be an Amazon Go store.
We believe the latest move will aid Amazon in capitalizing on the growing momentum in in-store grocery shopping in the current phase of the pandemic, wherein the preference for offline shopping has increased, driven by solid vaccination drives.
Moreover, the most demanding Just Walk Out technology of Go stores will help the company to deliver enhanced grocery shopping experiences to customers, which, in turn, is expected to bolster customer traffic in the store.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Growing Grocery Initiatives
The latest move of AMZN bodes well with its deepening focus on the grocery segment.
The company already operates six Amazon Fresh grocery stores in Greater Washington. Further, it has plans to open grocery stores in downtown DC, H Street NE, Dupont Circle, Potomac Yard, Baileys Crossroads, Gaithersburg and Silver Spring.
Apart from these, Amazon recently opened a 40,000-sq-ft Amazon Fresh grocery store at 7201 W. 24th St., North Riverside, IL, which is equipped with its cashierless technology.
The e-commerce giant is gearing up to expand its service, namely Amazon Fresh Marketplace, in the United States and a majority of locations in Europe this year.
The increasing number of Amazon Fresh stores, equipped with Just Walk Out technology across the United States and outside the country, remains a major positive.
The company’s expansion of its Fresh infrastructure in India remains noteworthy.
We believe that all these endeavors will boost the company’s prospects in the promising grocery retail market.
Deepening Retail Focus
Amazon’s latest move bodes well for its strengthening retail strategies, which include bolstering its online and offline retail presence, boosting distribution channels, and accelerating delivery.
The increasing number of Amazon Fresh grocery stores across the United States is a major positive.
The growing base of Amazon Go, which is a cashierless store of the company, remains another positive. Notably, Amazon currently has more than 25 such stores.
The company’s intentions to expand its Whole Foods store network across the United States remain noteworthy.
Beside grocery store plans, Amazon recently opened its first clothing store, Amazon Style, in Glendale near Los Angeles, CA. The store leverages Machine Learning technology to offer an enhanced and smart shopping experience to customers by helping them find the items they are looking for.
An increasing number of Amazon 4-star stores, which stocks four-star or beyond-rated products from categories like kitchen appliances and other items, home stuff, toys, books, devices, consumer electronics, and games, remains a tailwind.
We note that deepening retail focus and expanding the physical presence of Amazon will continue to drive its physical stores’ sales growth, which, in turn, will aid its financial performance.
Notably, the company generated $4.6 billion of revenues from physical stores in first-quarter 2022. The figure was up 17% year over year.
Consequently, this will instill investor optimism in the stock, which is currently battered by rising inflationary pressure, intensifying competition, mounting expenses and a slowdown in online shopping activities.
Amazon has lost 34.2% on a year-to-date basis.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are Group 1 Automotive (GPI - Free Report) , AutoNation (AN - Free Report) and The Kroger (KR - Free Report) . While Group 1 Automotive currently sports a Zacks Rank #1 (Strong Buy), AutoNation and Kroger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Group 1 Automotive has lost 17.3% on a year-to-date basis. The long-term earnings growth rate for the GPI stock is currently projected at 14.19%.
AutoNation has lost 2.6% over a year. The long-term earnings growth rate for the AN stock is currently projected at 24.74%.
Kroger has gained 6.1% on a year-to-date basis. The long-term earnings growth rate for the KR stock is currently projected at 11.27%.