With the coronavirus pandemic showing no signs of dissipating any time soon, people are compelled to stay indoors. This, in turn, has led to a spike in online sales of groceries.
Keeping in mind about the rising demand for groceries and the scarcity of workers amid the coronavirus outbreak, Amazon (AMZN - Free Report) is reportedly offering higher pay to its warehouse staffs to work in the Whole Foods grocery units.
This move will enable Amazon expand its presence in the grocery business. In addition, if the company is able to catch up with the demand surge and deliver groceries on time during such difficult times, it will help people and instill investor confidence.
Amazon.com, Inc. Price and Consensus
Amazon's Delivery Efforts during COVID-19 Crisis
Per Bloomberg, Amazon is witnessing a flurry of orders on account of customers’ unwillingness to visit retail stores on fears of contracting the virus. Although the company’s delivery capacity remains constant, the rising need to meet the overflowing orders is now becoming challenging.
Nevertheless, the Seattle giant has been making brilliant efforts to meet the demand spike by delivering the daily essential goods and groceries on time. The company’s strong focus toward enhancement of its quick delivery services is a key catalyst.
In this regard, recently Amazon announced that it plans to hire 100,000 new workers for warehouses and delivery services in the United States to meet the surge in demand during this stressful time.
In addition, the company has rolled out an initiative to enhance the Same-Day Delivery program, by making it available in the cities of Philadelphia, Phoenix, Orlando and Dallas for Prime members.
Further, the company has built mini-fulfillment centers that are first-of-their-kind buildings. Notably, these new facilities are located closer to customers, in turn, helping Amazon reduce the number of hours taken to deliver orders via same-day delivery services.
The company’s one-day shipping and many other fast delivery services are noteworthy.
Amazon offers online grocery services through Amazon Fresh and Amazon Prime Now. It has doubled down on the grocery industry since the company acquired Whole Foods in 2017. It has expanded grocery delivery services to more than 2,000 cities.
The company’s rapidly-expanding grocery-pickup and delivery services, along with availability of Prime Savings at all Whole Foods Stores and Whole Foods Market 365 stores across the United States, are key growth drivers.
During such turbulent times, timely delivery of groceries is a massive challenge for retailers and therefore, companies like Amazon and its largest competitor, Walmart Inc. (WMT - Free Report) , are currently focused on the delivery of these grocery items.
Zacks Rank & Other Stocks to Consider
Amazon currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector include Stamps.com Inc. (STMP - Free Report) and eBay Inc. (EBAY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Stamps.com and eBay is currently projected at 15% and 11.56%, respectively.
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