In the summer of 2017, Amazon (NASDAQ:AMZN) sent shockwaves through the grocery retail industry with its acquisition of Whole Foods. This signaled that the e-commerce giant was planning to bring its online shopping model into grocery retail. Online grocery shopping has not been adopted with the same enthusiasm as other retail. This is something Amazon will hope to change heading into the next decade.
Last week, Amazon-owned Whole Foods announced that it had ended its partnership with Instacart, the grocery delivery company. Amazon has also worked to improve its brick-and-mortar footprint to attract shoppers that are still attracted to an in-store experience. The company is reportedly considering launching more Amazon Go convenience stores going forward.
According to a report from JDA, in 2018, more Americans started their Thanksgiving shopping online than in any other location. However, this same report also indicated that 83% of consumers planned to do shopping inside the store. On the bright side, 28% of shoppers did research online which also leads to a 13% increase in spending, according to the same report.
Amazon is a leader in this category, but shoppers will continue to adjust into the next decade. Shares of Amazon have dropped 20% over the past three months as the U.S. tech sector has been pummeled. Amazon is not going anywhere, but investors may want to wait longer as this retreat looks like it may have momentum into the new year.
