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Amazon CEO Andy Jassy Says Grocery Gamble Is Paying Off



SEATTLE, WA - Amazon might be known for same-day shipping and omnichannel operations, but behind the scenes, the e-commerce giant has been quietly growing another major arm of its empire: groceries.

Andy Jassy, Chief Executive Officer, Amazon
Andy Jassy, Chief Executive Officer, Amazon

“I’m very bullish about grocery,” Andy Jassy, Chief Executive Officer, said during a recent Q&A with shareholders. “Some folks don’t realize how large a grocery business Amazon has today.”

Now, to be clear, Jassy isn’t just throwing buzzwords at a quarterly report. He’s talking real numbers. As in, more than $100 billion in gross sales last year just from center-of-aisle staples like canned goods, beauty products, and everyday essentials. That’s not even counting Whole Foods Market or Amazon Fresh.

In other words: Amazon is already a grocery giant, and it’s just getting warmed up.

“I’m excited about what I’m seeing with Whole Foods Market,” Jassy said. “It’s growing meaningfully faster than the grocery industry in general,” he added, crediting recent changes that improved both profitability and customer experience. “We’ve got a great trajectory.”

The e-commerce giant has been quietly growing another major arm of its empire: groceries
The e-commerce giant has been quietly growing another major arm of its empire: groceries

And then there’s that mysterious little pilot store Amazon rolled out in NYC – a smaller, daily-shop concept that reportedly knocked internal expectations out of the park.

“Customers have really responded excellently to it,” he noted, hinting that more locations are likely on the way.

But perishables are the next frontier, and Jassy knows it.

“We know if we want to serve as many customers as we want, we need to have a broader, mass perishables offering,” he explained.

That’s where Amazon Fresh comes in. Jassy says version two of the Fresh store layout is already outperforming the original, and they’re testing additional ideas like “store within a store” setups inside Whole Foods. Think: weekly essentials like soda or snacks you wouldn’t normally find at the organic-leaning grocer, but still want to grab in one trip.

Amazon is already a grocery giant, and it’s just getting warmed up
Amazon is already a grocery giant, and it’s just getting warmed up

Then there’s what might be the real game-changer: perishable same-day delivery.

“We’ve started adding perishable items to some of our same-day facilities,” Jassy said. “Eggs, milk, yogurt, bread—you name it.”

Tests in Phoenix, Kansas City, and Orlando have shown promising results, and Amazon is now eyeing a larger rollout.

“That experience is really resonating with customers,” he emphasized. “We’re seeing very significant adoption.”

With millions of SKUs already flying out of same-day facilities, adding groceries just makes sense. And for Jassy, this isn’t just a nice-to-have. It’s the future.

“I think the way people buy groceries is going to continue to evolve over time,” he said. “So I continue to be very, very bullish on our grocery business.”

From frozen peas to Prime savings, Amazon wants a bigger slice of consumers' fridges. And based on Jassy’s outlook, it might achieve just that.

For the latest retail moves and what they mean for fresh, keep checking in with ANUK.