Amazon is already selling a wide range of ‘dry food’ products in the UK and they are now testing AmazonFresh in their home town of Seattle which has been running for the past 5 years. They are now imminently planning a further roll out to Los Angeles and San Francisco Bay areas. If they are successful Amazon could then launch into a further 20 urban areas by 2014 including outside of the US.
Amazon are now searching for new, large-scale markets to enter so they are able to maintain a phenomenal growth rate that has seen their shares soar 220% in value over the past five years. The grocery business, which generated $568bn in retail sales in the US alone last year, is seen as a prime target.
It is not known whether Amazon currently makes a profit on AmazonFresh, with chief executive Jeff Bezos telling shareholders at last month’s AGM that the firm had “made progress on the economics over the last year”.
Amazon is expected to focus its AmazonFresh expansion plans on areas where it offers same-day delivery, which in the UK would include post codes within the M25 and Birmingham.