Amazon’s ‘Clicks-To-Bricks’ Initiative Isn’t Going So Well.

Published On: July 1, 2021By Categories: Short Read

It appears as if Amazon still has a ways to go before mastering bricks-and-mortar. The grocery industry was shaking in its boots when Amazon acquired Whole Foods in 2017, and yet, four years later, following a pandemic in which Whole Foods should have benefited from synergies with the online behemoth, it commands just a measly 1.2% market share (compared to 22% for Walmart and 12% for Kroger). And despite continued openings of new locations, annual revenue for Amazon’s physical stores (including Whole Foods as well as Amazon Books, Amazon 4-Star, Amazon Go, etc.) has somehow been in decline since 2018. Gross sales, it should be said, is not the only or even the main purpose of these spaces. And Amazon is in the process of rolling out an entirely new mid-market grocery banner, confusingly called Amazon Fresh, which could be a game-changer if it is able to successfully implement the company’s “Just Walk Out” technology enabling customers to bypass check-out altogether. For now, though, Amazon’s “clicks-to-bricks” initiative, so critical to the long-term profitability of its e-commerce division, seems to be struggling out of the gate.

Share This Story: