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Amazon Grows Grocery by 33%

Amazon Online Grocery Sales Over $1.5 Billion

In a year of massive gains for Amazon, is it any wonder that their online Grocery sales grew by 33%, or $495 million in the same year that they acquired Whole Foods? However, Amazon Grocery sales were on a tear before the Whole Foods acquisition in August of 2017. Adding the 365 Everyday Value brand as well as the ability to source from brick and mortar stores all over the country only helps Amazon Fresh sales.

Grocery: Where is it all Going?

Up. Simply put, we have yet to see the full scale or repercussions of Amazon acquiring Whole Foods. Eater, rather comically, reported a price hike two months after the acquisition and then barely three weeks later reported price slashesand Prime member benefits just before Thanksgiving. It’s only been two months since the reported price drops – plenty of time for Eater to report several more hikes and slashes – and those reports were made midway through Q4 2017, so Q1 2018 will be the first real accurate view of how Amazon is changing the Whole Foods landscape.

The graph in this article certainly points to a massive upward trend in Grocery sales continuing. It will be interesting to track both Whole Foods sales as well as Amazon and 365 Everyday Value sales throughout the first quarter of this year, but early estimates have them doubling sales YoY based on the massive spikes immediately following the Whole Foods Acquisition and the release of 365 Everyday Value on Amazon.

How Will Amazon Use Whole Foods Stores?

Or we could be way off. Perhaps Amazon wants to keep the brick and mortar separate from online sales and is truly using Whole Foods locations to increase their ability to send Amazon Fresh orders to customers. This doesn’t seem too likely, but it is definitely something to look out for in 2018.

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