AmazonFresh sales boomed post-Whole Foods

Despite dropping out of markets in nine states, AmazonFresh sales boomed in the latter part of 2017, up 35%.

Fresh grocery is still a small part of Amazon's portfolio. That 35% boosted the division’s sales to $135 million in the last four months of 2017, according to analytics by One Click Retail. For context, Amazon’s total estimated grocery sales were projected at $2 billion last year.

Whole Foods Market’s 365 Everyday Value brand of private label groceries were credited with driving more sales for Amazon’s grocery.

Some of the best-selling fresh grocery items were organic baby spinach and organic riced cauliflower, according to the analysis. Amazon says its top grocery item for AmazonFresh buyers was bananas, according to a Best of 2017 post.

Grocery expansion

Analysts are predicting a major push for Amazon’s grocery division in the coming months. The company appointed Prime Now head Stephenie Landry, who led the expansion of Prime Now to more than 30 U.S. cities and 50 global markets, as vice president of Prime Now/AmazonFresh and Restaurants for the Seattle-based company in late December.

Some predict the leadership changes, combined with contraction of AmazonFresh service from some markets, means the company is consolidating and reorganizing Prime Now and AmazonFresh into a more unified grocery offering.

Landry told Recode:

“If you look around this facility, you’re going to see a lot of everyday items – food and consumables…AmazonFresh sells the same types of products but a much greater variety. And so both of them have a lot of syngergies and it makes sense to think about them jointly.”

But she also said the two divisions won’t merge…yet.

“And also I actually think that we’re going to have lots of different ways to get food to consumers…but behind the scenes it makes sense to develop as many efficiencies as possible.”

…more brick and mortar?

Amazon also has been rumored to be shopping for another brick-and-mortar, possibly Target.

Business media is mixed on whether or not it will happen, or if it’s a good idea.

A few headlines:

AmazonFresh sales boomed post-Whole Foods

AmazonFresh sales boomed post-Whole Foods

…more brick and mortar?

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