The news: Several months after Amazon began testing a grocery delivery service for consumers who don’t belong to its Prime loyalty program in select cities, the retail giant plans to expand the offering nationwide, per Bloomberg.
Why it matters: Groceries are one of the few retail categories that Amazon doesn’t dominate and the leading player in the space is its chief rival, Walmart.
While Amazon has long sold a massive number of household staples online, it rightly recognizes that physical stores are where the vast majority—88%, according to our grocery forecast—of sales take place.
The big challenge: If Amazon wants to present a serious challenge to Walmart, it needs to rapidly grow its physical footprint.
Go further: Read our Retail Media Forecast H2 2023 report.
First Published on Nov 9, 2023
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