EXCLUSIVE: How Amazon’s Grocery Strategy Is Showing Up in Prime Events
Amazon is going big on shopping events and getting some big results. The retail giant’s Prime Big Deal Days event on Oct. 8 and 9 was deemed the biggest October shopping event ever, with sales up from last year. That event came just three months after Prime Days smashed records in July, with shoppers spending $14.2 billion on July 16 and 17. And the Black Friday and Cyber Monday sales are just around the corner.
As Amazon strives to make the shopping experience more seamless across its various categories and channels, how does grocery fit into the sales event mix? Progressive Grocer spoke exclusively with Jamil Ghani, VP, Worldwide Prime at Amazon, at the company’s recent “Delivering the Future” event in Nashville, Tenn., to learn what Prime members are buying during these kinds of deal days, and why.
“I love these events because they really are a culmination of what we try to do in shopping for our members. We want to make sure that the combination of Earth's biggest selection at the most competitive prices is delivered with the utmost convenience, and the events are showcase of all of that,” he said. “We've got millions of deals on top products and top brands across the entire store.”
To that point, while many Prime event sales stem from apparel, beauty, toys and electronics, the inflationary climate of the past few years has spurred more practical purchases, too. In his own household, Ghani noted, the family is balancing wish lists for gifts with the need for everyday essentials like diapers. “You see that happening in the (Amazon) store, where it’s the needs and wants coming together, all at attractive prices,” he pointed out.
Groceries fall into that scenario, too. “What we saw in Prime Day – and we’re seeing it with Prime Big Deal Days, too – is that consumables also apply to groceries. So, if you shop Whole Foods or Amazon Fresh, you’ll see that we have Prime-exclusive savings every day and those are made even better for the events,” he reported.
In general, Ghani added, Amazon is seeing strength in the grocery segment of its Prime business. “I'm really, really excited about what we're seeing with the grocery subscription,” he said. “For only $9.99 a month or $99 for the year, members can avail themselves not only of Whole Foods delivery and Fresh delivery, but a dozen other banners, too. I think it the most comprehensive and smartest choice for a busy household, because you can obviously shop marquee banners like Whole Foods and Fresh, but then also a lot of regional grocers and pharmacies, all in a really affordable subscription. I know in our household it's a lifesaver.”
He continued, “Grocery is an incredibly important part of our strategy going forward because it's the highest frequency category. We know that we are just getting started as a grocery solution, but we feel like the combination of physical assets plus the digital assets we have and integration to the broader Amazon.com positions us well to be kind of the new omnichannel leader. And that's what we're working towards.”
That work has been ongoing, evident faster-than-ever delivery speeds and launches like the new Amazon Saver private label brand. “I think it’s about product innovations, and then you have innovations in the in-store experience. We have digital signage and marketing and checkout technologies and are integrating more grocery selection into our same-day offerings. We work backwards from the customer every time, but we specifically work backwards from busy households like yours and mine,” Ghani explained.
