Amazon.com Inc. (AMZN - Free Report) continues to expand its market share in the online grocery space. Mexico is the latest addition to the list of countries receiving its online groceries.
The company’s new Mexico site, which was officially launched in 2015, will offer food items like coffees, teas, liquors, wines, cooking ingredients and non-perishable snacks.
Other items available on its Mexico site include shelf-stable foods and beverages, dairy products, vitamins and supplements, as well as beer, wines and spirits.
Undoubtedly, this new endeavor will augment its online presence and fend off competition from the supermarket giant Wal-Mart Stores, Inc. (WMT - Free Report) . The new destination will also help the company attract more customers to its Amazon Prime program, which is a significant revenue source.
Amazon is one of the largest online retailers in the world, with extensive operations in North America. Although Amazon’s primary product line was of books, it has diversified into a host of other product categories and now wants to establish a global presence.
Shares of Amazon moved up 0.2% from the previous trading session, closing at $2,002.38.Also, it has outperformed the industry it belongs to on a 12-month basis. The company’s shares have gained 104.4% compared with the industry’s growth of 45.8% in the said period.
Notably, Amazon is making aggressive efforts to expand in the booming online grocery space. Its strategies like Amazon Go grocery stores underscore its focus on exploiting each nook and cranny of the retail food space.
Apart from this, Amazon Prime members already enjoy free two-day and one-day deliveries. Amazon Restaurants offer one-hour delivery for Prime members from popular restaurants. Amazon Fresh grocery delivery service can fulfill orders within 15 minutes if users pay $15 per month.
Amazon’s rising dominance and expansion in the grocery space has made most retailers trepidatious, thus compelling them to make efforts to combat the intense competition.
In order to keep pace with the evolving consumer demand and stand strong amid a tough environment, many big companies including Walmart have also been undertaking several e-commerce initiatives, including buyouts, alliances, along with improved delivery and payment systems to expand their share in the grocery market.
Zacks Rank and Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Infineon Technologies AG (IFNNY - Free Report) and JD.com, Inc. (JD - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Infineon Technologies and JD.com is currently projected to be 7.5% and 23%, respectively.
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