Edition: India  
> >

Amazon to increase spending on grocery deliveries, reckons US broker Wedbush

Proactive Investors Monday, 19 June 2017 ()
Internet retail giant Amazon.com Inc. (NASDAQ:AMZN) is expected to increase spending to drive growth of online ordering and delivery of groceries following its deal to buy Whole Foods Market Inc (NASDAQ:WFM) for US$13.7bn, according to analysts at US broker Wedbush The analysts said they see the acquisition giving Amazon’s revenue a boost but only a slight lift to earnings per share due to further spending. “We expect incremental top-line growth to be largely absorbed by increased spending as Amazon augments its grocery delivery capabilities,” they said. A jobs cull...? However, Amazon has plans to cut costs by culling jobs at Whole Foods, Bloomberg has reported. The e-commerce group is said to be considering replacing Whole Foods cashiers with technology. Meanwhile, Wedbush also expects Amazon will use the grocery stores of Whole Foods as distribution centres. Following the acquisition, the number of Amazon's refrigerated US locations grows by 440 Whole Foods Market stores from an estimated 20 fulfillment centres. “As a result, Amazon is positioned to quickly expand its Amazon Fresh offering, through which Amazon Prime subscribers pay an additional US$14.99 per month for grocery delivery,” Wedbush said. Amazon may offer expedited delivery... “Amazon may eventually offer expedited grocery delivery, potentially in an hour or less, to the vast majority of the US population once it has built up its delivery network. Wedbush added that Amazon Fresh customers may no longer have to make delivery reservations days or weeks in advance and see Whole Food stores as ideal outlets for popular Amazon products such as Echo, Fire TV, and Kindle “given the favorable demographics of the customer base”. The analysts gave Amazon an 'outperform' rating and a target price of US$1,250. Shares in Amazon rose 0.94% to US$997.0 in US pre-market trading.
Share on
Share on
Post on 
Share by
Source: Wibbitz Studio - < > Embed

News video: Is Amazon's next big purchase GrubHub?

Is Amazon's next big purchase GrubHub? 00:41

GrubHub Inc. shares skyrocketed Monday after rumors spread that the food-ordering service could be Amazon's next purchase. The investment firm Wedbush Securities suggested Amazon is considering the deal, after the company's Whole Foods buyout. GrubHub's stocks grew by up to 7.2 percent by midday,...

Recent related news

Amazon's grocery push playing catch up with Chinese e-commerce giants

BEIJING (Reuters) - As Amazon.com Inc looks to swallow U.S. grocery chain Whole Foods, China's tech giants are already digesting hefty bricks-and-mortar deals,...
Reuters India - Technology

Amazon India aims to launch its own digital payments platform soon: Report

Amazon India is looking forward to launch its own digital payments platform in India soon. The global e-commerce giant has also reportedly got the required nod...
BGR India - Technology

Amazon to buy Whole Foods for $13.7 bn; Walmart, Target, Kroger should be Terrified

E-commerce giant Amazon Inc. on Friday announced that it would buy Whole Foods Market Inc. for $13.7 billion and it is a step forward to embracing...
Fab Newz - Business

Ed Goldman: Amazon, Whole Foods and drugs: Who could ask for anything more?

Almost lost in the announcement late last week that Amazon was buying Whole Foods was the simultaneous buzz about the cyber giant’s desire to get into the...
bizjournals - Business

You Might Like

Other recent news in Business

Whirlpool says working with Britain after Hotpoint fridge freezer sparked LONDON blazeGERMANY lobbies for Indian railway projects
Exclusive: Report says EU firms face higher banking bills after BREXITSaina Nehwal crashes out of AUSTRALIAN OPEN SUPER SERIES
SE Asia Stocks-Muted as oil outlook bleak; S'pore, PHILIPPINES log 2nd losing weekIndian Passports to be in both ENGLISH AND HINDI; application fees reduced by 10%


Environmentally friendly: newsR is hosted on servers powered solely by renewable energy
© 2017 newsR / One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter