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Amazon Finds It Hard To Beat Up Rivals In Grocery Industry

April 17, 2016: 12:00 AM EST
Online retailer Amazon’s grocery delivery service, AmazonFresh, has failed to grow as fast as the company hoped and market analysts expected. In contrast, the company’s Amazon Prime loyalty program and Amazon Web Services online storage service have become multi-billion-dollar brands and boosted market value to almost $300 billion. Its inability to offer delivery prices lower than those offered by rivals and geography prevent Walmart from expanding its grocery delivery business beyond the largest urban centers. Wal-Mart Stores, which claims to have a store within a 5-mile radius of 70 percent of Americans, is expected to maintain its hold on the number 1 position in the grocery trade, the only market segment it outperforms Amazon.
Jeremy Bowman, "Amazon still can't crack the grocery industry", Business Insider, April 17, 2016, © Business Insider Inc.
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