Andy Jassy thinks your grocery list needs a software update. The Amazon.com Inc (NASDAQ:AMZN) CEO believes the "weekly stock up" is on its way out — replaced by a new kind of grocery behavior that blends everyday essentials, perishables, and AI-driven convenience. "We have a very large grocery business," Jassy said in response to an analyst question over their third quarter earnings call.
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From Stock-Up To Same-Day
"If you look at our entire grocery business, if I don't even count Whole Foods Market and fresh in the last 12 months to over $100 billion of gross merchandising sales, which would make us a top three grocery in the U.S."
What's driving that scale isn't new store formats, but the ability to merge fresh produce with everyday shipping. "We were really taken aback at the adoption. Not just the number of people that started buying perishables from us very quickly, but how often they came back downstream to buy perishables and groceries from us in the future," he said.
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Scaling Fresh, One City At A Time
That adoption curve is turning into infrastructure. "We've now expanded that to 1,000 cities around the U.S. We'll be in 2,300 by the end of the year. And it's really changing the trajectory and the size of our grocery business," Jassy added.
The Amazon chief also said the way people think about grocery shopping itself is changing. "This many years tradition of the weekly stock up, grocery stock up is changing and I think we're a big part of that and I think there's a lot of potential there for the grocery side."
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Beyond The Cart
It's not just delivery. Jassy hinted at a multi-format play that includes expanding Whole Foods' footprint and a new urban concept. "I'm also very excited about this new concept daily Shop that we have, which is a smaller version of Whole Foods in urban settings, which we have three that we've launched that are off to very good starts that you should expect to see more of as well," he said.
For Jassy, perishables aren't just about milk and eggs — they're about habit formation. Amazon wants to make "add yogurt to cart" the new grocery run.
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