Amazon is accelerating its expansion in the U.S. fresh food retail market, targeting Walmart, which has been the leader for many years.Earlier announcementIn the report, Amazon said it currently provides fresh food same-day delivery service in more than 1000 cities in the United States, and plans to expand it to more than 2300 cities by the end of this year, and it is expected to continue to promote it in 2026.
Doug Herrington, CEO of Amazon's global store business, emphasized that Amazon continues to innovate to make grocery shopping "easier, faster and more affordable" for customers.
In terms of shipping pricing, Prime members can enjoy free shipping in most cities with orders over $25. Orders below that amount will be charged an additional $2.99, while non-Prime members must pay $12.99 per order. Currently, Amazon Prime membership costs $14.99 per month, or $139 per year.
This expansion means that Amazon is once again extending its tentacles into the US food retail market, which has long been led by Walmart.
According to data released by the Food Marketing Institute (FMI), US consumers spend over $4.5 trillion annually on groceries at over 1 supermarkets, with online sales currently accounting for less than 20%. Walmart, on the other hand, holds over 60% of this market share, with food sales accounting for XNUMX% of its total US revenue. Walmart has offered same-day delivery for many years.
Following the announcement, the stock prices of several US grocery retailers and delivery companies immediately fluctuated. For example, Instacart, a grocery delivery platform, plummeted over 11%, Kroger, a supermarket operator, fell over 4%, DoorDash, a delivery platform, fell nearly 4%, and Walmart, a nearly 3% drop. In contrast, Amazon's stock price bucked the trend, rising 1.39%, bringing its current market capitalization to $2.39 trillion.
Amazon has been exploring fresh food retail for years, including hiring former Tesco executive Tony Hoggett in 2022 to oversee the restructuring of its online and physical retail operations. However, Hoggett subsequently departed at the end of 2024, and the business is now being led by Jason Buechel, CEO of Whole Foods Market.
FromLatest financial reportAmazon's revenue for the second quarter of fiscal year 2025 reached $1677 billion, a 13% year-over-year increase, and its net profit was $181.64 billion, a 35% increase year-over-year. Online store revenue grew 10% to $614.85 billion, while brick-and-mortar store revenue grew 7% to $55.95 billion.
