Amazon (AMZN) Boosts Grocery Retail Focus With Latest Plan

Amazon AMZN is firing on all cylinders to expand its footprint in the retail sector on the back of its robust technologies.

This is evident from its plans to introduce its palm scanner payment technology called Amazon One at more than 65 Whole Foods stores in California.

Amazon One allows customers to pay for in-store purchases by scanning their palms, delivering a fully contactless payment experience.

We note that the integration of Amazon One into Whole Foods operating system is in sync with Amazon’s deepening focus on revolutionizing the retail industry on the heels of Artificial Intelligence and Machine Learning technologies.

The latest move will help the company deliver an enhanced grocery shopping experience to customers, which, in turn, is expected to bolster customer traffic in its stores.

Growing Grocery Initiatives

The recent Amazon One plans of the e-commerce giant bode well with its strengthening efforts to expand its grocery business.

The increasing number of Amazon Fresh stores equipped with Just Walk Out technology across the United States and outside the country remains another major positive.

The company recently opened the Amazon Fresh grocery store in North Riverside, IL. The new Amazon Fresh store is equipped with the company’s cashierless technology — ‘Just Walk Out.’

It is gearing to expand its service, Amazon Fresh Marketplace, in the United States and a majority of locations in Europe this year.

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.

Growing Competition

We believe that all these efforts are in sync with the company’s growing efforts toward expanding its physical presence.

Amazon continues to witness growth in sales from its physical stores, which totaled $4.7 billion in the second quarter of 2022. The figure grew 12% from the year-ago quarter.

Amazon’s growing physical presence will continue to intensify competition for the brick-and-mortar stores, as well as big retail stores like Walmart WMT, Target TGT and Kroger KR, to name a few.

Notably, Walmart is currently gaining from its sturdy comp sales record, which is driven by its constant expansion efforts. The company’s strength in grocery and health & wellness categories remains a major positive.

Then again, Target has been benefiting from making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. Its efforts to enhance omni-channel capabilities and introduce the latest brands remain noteworthy.

Meanwhile, Kroger’s investments to enhance product freshness and quality, as well as expand digital capabilities, remain major positives. The company’s efforts to augment the Our Brands portfolio by launching products is another tailwind.

Nevertheless, Amazon’s expanding product offerings at its physical stores, its heavy spending to expand its fulfillment network and fast delivery services remain commendable.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.