// Amazon chief executive Andy Jassy vows the giant is ready “go big” on physical stores
// Jassy said the ecommerce giant has faced several setbacks from the lack of “normalcy” during the pandemic
Amazon boss Andy Jassy has squashed rumours that the online giant’s grocery store business has been put on hold, claiming the ecommerce giant is ready to “go big” on bricks-and-mortar stores.
The chief executive told the Financial Times that the company had faced a series of setbacks due to the lack of “normalcy” during the pandemic.
It acquired Whole Foods for $13.7bn five years ago but the ecommerce giant has yet to disrupt the $1.6tn US grocery sector.
Amazon pulled back its expansion plans for its grocery leading to a $720mn impairment in the last quarter of 2022 which saw several Amazon Fresh locations closed and new openings put on hold.
“Remember, a lot of these opened right in the heart of the pandemic,” Jassy told the publication.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
“So we haven’t had a lot of normalcy. We’re experimenting with selection, checkout formats, assortment, price points. I’m encouraged we have several that I think are promising.”
The giant reported in its quarterly earnings update that sales for its physical store unit has grown just 10% since the Whole Foods acquisition, representing 3.4%.
“We’re just still in the early stages,” said Jassy.
“We’re hopeful that in 2023, we have a format that we want to go big on, on the physical side.
“We have a history of doing a lot of experimentation and doing it quickly. And then, when we find something that we like, doubling down on it, which is what we intend to do.”
Rather than rely on the Whole Foods subsidiary, Amazon moved to opening its own grocery stores fitted with Just Walk Out technology, allowing shoppers to skip the check-out process on their way out.
However, its plans to open more than 200 Fresh stores have led to several being closed both in the UK and US.
Jassy said he was “optimistic” about its online grocery business, but acknowledged that “people want to actually touch and feel” food before buying.
In March, last year the ecommerce giant closed all its bookstores and 4-star shops in the UK and US to focus on its efforts on Amazon Fresh, Amazon Go and Whole Foods Market.
Click here to sign up to Retail Gazette‘s free daily email newsletter
