Is Amazon Set for Grocery Success During a Recession?
A tumultuous end to 2018 and a slow start to 2019 have some market analysts whispering about a threat that was seldom mentioned during the longest bull market run in financial history: a recession. And while a recession is far from a sure thing, it's worth looking at how one might affect Amazon (NASDAQ: AMZN), a company like no other. Amazon started as an online bookstore, but it quickly shed the limitations that came with that and became an "everything store." If it could be shipped, Amazon would sell it (or would help a third party to sell it to you) on Amazon.com. And as Amazon grew and leveraged its size while cutting shipping deals, more and more things became cost-effective to ship. Whole Foods groceries can be ordered from Amazon Fresh and Prime Now, which are Amazon's grocery delivery and same-day delivery programs, respectively; and Whole Foods groceries are no longer available through online delivery competitor Instacart. Whole Foods has only around 2.5% of the grocery store market, which is well behind Walmart(NYSE: WMT), a big Amazon rival that has more than 5,000 physical locations (more than 10 times as many as Whole Foods has) and a 23% market share in groceries.