Under Jassy, who succeeded Jeff Bezos as CEO in 2021, the company has taken steps to cull expenses in its grocery unit and elsewhere as it grapples with slowing sales and a gloomy economic outlook. 'It's a good business for us in the grocery space,' he added.

Jassy said he remains bullish about Amazon's grocery business and is pleased with the progress Whole Foods has been making on profitability in the last year. It made a historic splash when it acquired upscale grocer Whole Foods Market in 2017 for $13.7 billion, Amazon's biggest acquisition ever.Īmazon's mix of grocery offerings grew increasingly complex once it launched a line of Go cashier-less stores and a Fresh supermarket chain aimed at conventional shoppers. Amazon Fresh stores sat vacant, signaling a pullback in the company's grocery strategy.Īmazon has been determined to crack the grocery segment since the launch of its Fresh grocery delivery service in 2007. The Information reported in December that a handful of built-out U.S. The company just closed out its weakest year of growth in its quarter century as a public company and is cutting costs after an extended period of outsized expansion.Īmazon currently operates several dozen Fresh grocery stores and 28 Amazon Go convenience stores, according to its website. We see some encouraging signs, and when we do find that equation, we will expand it more expansively.'Īmazon reported better-than-expected fourth-quarter revenue on Thursday but issued a disappointing forecast for the first quarter. 'We're optimistic that we're going to find that in 2023,' Jassy said.

CEO Andy Jassy said on the earnings call that Amazon's stores need to resonate with customers and the company needs to be in a position 'where we like the economics.' Olsavsky said that as part of a periodic assessment of its grocery portfolio, the company 'decided to exit certain stores with low-growth potential.' He said the company took a $720 million impairment charge in the fourth quarter as a result.Īmazon will also temporarily halt expansion of its line of Fresh grocery stores until it can find a format that differentiates the company's offering from others in the industry.

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