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Amazon fresh9/28/2023 “The connective tissue for everything we do across the company, is we realise that we exist to make customers’ lives better and easier every day and relentlessly want to do so,” Jassy said. Just as his predecessor Bezos did, Jassy continues to regard customer service as the all-important engine powering Amazon’s success. “And so I think having omnichannel is going to really matter.ĭespite the company’s current struggles, the customer experience is still the priority “You’re going to see a hybrid of those, where people pick out what they want online and pick it up in stores, or people are in stores and there’s something that’s not in inventory in the stores, so they go to their app or to a kiosk and order it to be delivered from online,” he said. The future of Amazon grocery is omnichannelįor Jassy, the future of grocery is a “hybrid” model, in which shoppers may order in store for delivery just as easily as at home for collection from a store. ![]() To that end, last week saw a pair of grocery veterans – Woolworths Group MD Claire Peters and former Boots retail director Peter Bowrey – start work at the company under former Tesco COO Tony Hoggett, who joined a year ago. We see some encouraging signs, and when we do find that equation, we will expand it more expansively.” ![]() “We’ve decided over the last year or so that we’re not going to expand the physical Fresh stores until we have that equation with differentiation and economic value that we like, but we’re optimistic we’re going to find that in 2023. Until that is sorted, expansion is on hold. “We’re doing a fair bit of experimentation today in those stores to try to find a format that we think resonates with customers is differentiated in some meaningful fashion and where we like the economics,” Jassy explained. “If you want to have a mass physical store offering, you need a different offering,” he said. While praising Whole Foods Market – “it’s a good business for us in the grocery space” – Jassy conceded that it was somewhat specialist. “If you really want to have significant market segment share in perishables, you typically need physical stores,” he added.ĬEO Jassy made a surprise appearance on Amazon’s fourth-quarter results call But it hasn’t yet nailed the channel There are going to be a lot of people that order their grocery items online and have it delivered to them, and there are going to be a lot of people who continue to buy in physical stores,” he said. We also believe that over time, grocery is going to be omnichannel. “It’s a very large market segment, and there’s a lot of frequency in how consumers shop for grocery. With the first closure of an Amazon Fresh store in the UK last month – in Dalston, less than 18 months after it launched – and a significant dialling down of reported store opening plans, some had questioned Amazon’s continuing commitment to physical grocery stores.īut Jassy confirmed grocery is “a really important and strategic area for us”. So what did Jassy – now a year in the top job – have to say on Amazon’s strategy in these ‘unusual’ times? Amazon is still committed to physical grocery stores “Given some of the unusual parts in the economy and in our business, I thought this might be a good one to join,” he explained. ![]() Just as his predecessor Jeff Bezos had, he typically left the handling of calls and analyst questions to his CFO.īut with the company’s profits falling to $278m in the quarter, down from $14.3bn in the same period a year ago with 18,000 job cuts announced last month and huge doubts hanging over the e-commerce giant’s commitment to physical grocery, Jassy decided to step in and set out his stall.
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