The Morning After: Amazon still plans to ‘go big’ on grocery stores

Despite recently saying it would lay off more than 18,000 people, Amazon is still looking to expand its empire – which could mean more physical stores. CEO Andy Jassy told the Financial Times that Amazon still plans to “go big” on its brick-and-mortar grocery store business.

The company’s physical store division accounts for 3.4 percent of the overall business and has grown only around 10 percent since the Whole Foods acquisition. Jassy noted that many Amazon Fresh locations opened in the COVID-19 pandemic, so Amazon hasn’t “had a lot of normalcy” to see what works. That’s also been true for other facets of its physical retail business. Almost a year ago, Amazon said it was closing all of its pop-ups, bookstores and four-star shops across the US and UK.

In the interview, Jassy said: “We have a history of doing a lot of experimentation and doing it quickly. And then, when we find something that we like, doubling down on it, which is what we intend to do.”

– Mat Smith

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