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Amazon (AMZN) Boosts Grocery Retail Focus With New Store
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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.
The recent opening of the new Amazon Fresh grocery store is a testament to the company’s efforts to that end. The latest 40,000-square-foot store is located at 7201 W. 24th St., North Riverside, IL.
The new Amazon Fresh store is equipped with the company’s cashierless technology — ‘Just Walk Out’ — which enables customers to enter the store by scanning the QR code in their Amazon app or using Amazon One to scan their palm or inserting a credit or debit card linked to their Amazon account.
Further, the technology lets customers to walk out without waiting in a checkout queue.
We note that the latest establishment marks the eighth Amazon Fresh store in Illinois, joining the other Amazon Fresh stores in Chicagoland and Naperville.
We believe the latest move is likely to aid Amazon in capitalizing on the growing momentum in in-store grocery shopping in the current phase of the pandemic where the preference for offline shopping has increased, driven by solid vaccination drives.
Moreover, the incorporation of Just Walk Out technology will help the company 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.
Apart from this, 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.
Further, 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.
Additionally, the company’s expansion of its Fresh infrastructure in India remains noteworthy.
We believe that all these endeavors are expected to boost the company’s prospects in the promising grocery retail market.
Wrapping Up
The opening of the new Amazon Fresh store is in sync with the company’s growing efforts toward expanding its physical presence.
Moreover, Amazon continues to witness growth in its sales from physical stores, which totaled $4.6 billion in the first quarter of 2022. The figure grew 17% from the year-ago quarter.
However, Amazon is currently suffering from rising transportation and fulfillment center costs. Further, the accelerating pandemic-related expenses remain risky for the company’s margin expansion in the near term. Further, the ongoing inflationary pressure and elevated staffing costs are other negatives.
These factors are making investors bearish on the stock. Amazon has dropped 30.4% year to date (“YTD”).
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Amazon (AMZN) Boosts Grocery Retail Focus With New Store
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.
The recent opening of the new Amazon Fresh grocery store is a testament to the company’s efforts to that end. The latest 40,000-square-foot store is located at 7201 W. 24th St., North Riverside, IL.
The new Amazon Fresh store is equipped with the company’s cashierless technology — ‘Just Walk Out’ — which enables customers to enter the store by scanning the QR code in their Amazon app or using Amazon One to scan their palm or inserting a credit or debit card linked to their Amazon account.
Further, the technology lets customers to walk out without waiting in a checkout queue.
We note that the latest establishment marks the eighth Amazon Fresh store in Illinois, joining the other Amazon Fresh stores in Chicagoland and Naperville.
We believe the latest move is likely to aid Amazon in capitalizing on the growing momentum in in-store grocery shopping in the current phase of the pandemic where the preference for offline shopping has increased, driven by solid vaccination drives.
Moreover, the incorporation of Just Walk Out technology will help the company 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.
Apart from this, 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.
Further, 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.
Additionally, the company’s expansion of its Fresh infrastructure in India remains noteworthy.
We believe that all these endeavors are expected to boost the company’s prospects in the promising grocery retail market.
Wrapping Up
The opening of the new Amazon Fresh store is in sync with the company’s growing efforts toward expanding its physical presence.
Moreover, Amazon continues to witness growth in its sales from physical stores, which totaled $4.6 billion in the first quarter of 2022. The figure grew 17% from the year-ago quarter.
However, Amazon is currently suffering from rising transportation and fulfillment center costs. Further, the accelerating pandemic-related expenses remain risky for the company’s margin expansion in the near term. Further, the ongoing inflationary pressure and elevated staffing costs are other negatives.
These factors are making investors bearish on the stock. Amazon has dropped 30.4% year to date (“YTD”).
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the retail-wholesale sector are AutoNation (AN - Free Report) , Dollar Tree (DLTR - Free Report) and Solo Brands (DTC - Free Report) . While AutoNation and Dollar Tree each sport a Zacks Rank #1 (Strong Buy), Solo Brands carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has rallied 5% YTD. The long-term earnings growth rate for AN stock is currently projected at 24.74%.
Dollar Tree has rallied 13.7% YTD. The long-term earnings growth rate for DLTR stock is currently projected at 15.54%.
Solo Brands has declined 69.3% YTD. The long-term earnings growth rate for DTC stock is currently projected at 16.74%.