Amazon's online grocery sales grew nearly 50% in its first quarter
Amazon’s sold an estimated $650mn worth of groceries in the US in the first quarter of the financial year, a 48% increase from the same period last year, according to a report by One Click Retail.
The report also noted that the e-commerce giant saw grocery sales reach an estimated £45mn in the UK and €65mn in Germany during the first quarter of 2018.
Coffee remains Amazon’s largest and fastest-growing grocery category by far, with 44% year-over-year growth.
Meanwhile, cold beverages also experienced 40% growth and combined the two categories equate to around $285mn in sales.
Snacks was also a promising category for the US-based firm with sales up 388% to $70mn, according to One Click Retail.
Across the UK, Germany and the US, Amazon Pantry - the firm’s service that lets customers bundle grocery and household goods together - saw “a levelling out” of growth, with sales up just 14% according to the report.
In March, Amazon said that it would make Amazon Pantry a separate subscription service for Prime members.
"Amazon is trying to make the service both more profitable for the company and more attractive to consumers. Shifting to a membership-based service is a natural choice considering the success they've had with that model in the past," said Spencer Millerberg, CEO at One Click Retail.
He added: "Whether or not Pantry's fortunes improve, Amazon's clear commitment to subscription-based services is going to have a strong impact on brands. With the ongoing rollout of Prime Now two-day grocery delivery into more jurisdictions throughout the US and the global success of other value-added "members only" features such as Amazon Fresh and Prime Day, Amazon is growing what is essentially the world's largest customer loyalty program – loyalty not only to the platform but also to the brands that sell through it."
Despite the growth in sales, Amazon’s costs are rising as the company sells an increasing number of low-margin household goods.
The cost of storing packaging and shipping goods, better known as fulfilment expenses, rose to $25bn in 2017, surpassing annual revenue growth of 31%.
Jim Donald appointed the CEO of Albertsons
Donald, who previously worked as the company...
The Idaho-based grocery chain, Albertsons, has appointed Jim Donald as its new Chief Executive Officer.
Donald, who previously worked as the company’s President and Chief Operating Officer, will keep his presidential role.
The new CEO will replace Bob Miller, who will continue in his position as Chairman of the Board.
“Jim Donald has built an exceptional career in retail,” remarked Bob Miller.
“His knowledge of our company and industry is unmatched, and I know his contributions will be invaluable as we enter the next chapter of Albertsons Companies.”
“We look forward to tapping his experience in leading large consumer brands as we work every day to meet our customers’ needs, both in-store and online.”
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In his career, Donald has held positions such as the CEO of Starbucks and the CEO of Pathmark Stores.
The newly-appoint CEO also worked for Albertsons for 15 years, starting 1976, becoming the Vice President of Operations in Arizona.
“Albertsons Companies is uniquely positioned to operate in both a 'four walls' traditional environment and the 'no walls' world of technology,” stated Jim Donald.
“We serve 34 million customers each week across our 2,300-plus stores and serve 5.5 million patients in our 1,700-plus pharmacies.”
“That's a significant food, health and wellness footprint. We're well positioned to serve the evolving needs of today's customer, wherever and whenever they choose to shop with us.”
“I am looking forward to leading this dynamic company as we focus on innovation and customer-centric retailing in all its forms.”