Amazon has been trying to replace the supermarket of a lifetime for some time. is failing

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In 2017, Amazon paid $13.7 billion to buy Whole Foods. The most important investment in its history had a clear objective: to position itself as reference in the food segment and the large supermarket chains.

That didn’t help much. Neither have (so far) launched Amazon Fresh or the futuristic employeeless stores, Amazon Go. The company created by Bezos does not stop launching initiatives to replace the super of all lifebut for now none of them is curdling.

The food market is “a very expensive hobby” for Amazon

It started out selling books, but over the last three decades Amazon has wanted to become a place where you can buy absolutely everything or, for that matter, where to get educated. Its success has been enormous in almost every way, but their efforts in the field of food do not quite work.

The e-commerce giant also wanted to be one of physical commerce, and after the opening of its Amazon Go stores bet even more on this model with the Amazon Go Grocery storesfive times larger than conventional Amazon Go stores.

That and other efforts do not seem to be giving too many results in the United States: a study by the consulting firm Numerator reveals that Amazon and WholeFoods have just 2.4% market share in the food segment.

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The undisputed leader is still Walmart, which has an 18% share. Kroger (8.8%) and Costco (6.4%) try to follow those footsteps from a distance. Home shopping cart delivery services fail to compete with their rivals, and in fact Amazon Go stores seem to have taken a backseat to this strategyaccording tell CNBC sources close to the company’s strategy.

Mercadona's new online store vs.  Amazon Prime Now: an antagonistic struggle of models for the virtual shopping basket

The financial results of the company have not been good of late: the shares, which had risen 400% during the last five years of the Bezos reign, have fallen by 13% since last July Andy Jassy took over.

Jake Dollarhide, CEO of the financial company Longbow Asset Management, explained that the core of Amazon “is the cloud, e-commerce and entertainment” and highlighted that “it’s almost as if the food business is a very expensive hobby“.

The truth is that competition is fierce in the United States, but the problem is not only dealing with Walmart, Kroger or Costco there: Amazon fights against itself.

Services like Amazon Fresh and Amazon Prime Now ended up competing with each otherand some former employees spoke of “corporate rivalry” and how that “civil war” ended up being won by Prime Now, which took control of Fresh, although that was the name that the entire division finally got.

All this has ended up adding to a complicated situation for this great commitment to offer these food services. Amazon resists this segment in the United Statesand in Spain things are not very different.

In Spain the alternative is Amazon Fresh

In Spain Amazon opened its food and drugstore sections in september 2015. In the United States he had done it even before, and he had combined that bet with other ambitious initiatives.

You may remember its buttons AmazonDash -which ended up becoming a service to have our pantry full of various products-, but none of these proposals has attracted as much attention as Amazon Go, the stores (almost) without human employees that in fact will arrive in Spain in 2024.

Amazon Fresh versus Mercadona, El Corte Inglés and Carrefour: we compare the fast delivery services of online supermarkets

It will be necessary to see how these stores behave if they really open, but the progress of the initiatives to replace traditional food stores have not materialized in Spain either when the company launched Amazon Pantry. The service for Prime was an interesting proposal to give customers of other supermarkets an option, but Amazon closed this service in full confinement, in May 2020.

The offer that seems to be convincing in Spain is that of Amazon Fresh, which could be regarded as Pantry’s heir and that after its arrival in Madrid and Barcelona it recently expanded to Valencia.

In 2017, Amazon paid $13.7 billion to buy Whole Foods. The most important investment in its history had a clear…

In 2017, Amazon paid $13.7 billion to buy Whole Foods. The most important investment in its history had a clear…

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