Amazon could hammer some grocery store stocks, Deutsche Bank says

Deutsche Bank sees tough times for Supervalu (SVU) and Safeway (SWY) if and when Amazon (AMZN) expands its AmazonFresh grocery delivery service beyond its three current test markets.

Kroger (KR) should fare better due to its strong price positioning and weighted average market share positions, and natural/organic specialty players are better positioned to absorb AMZN’s expansion, with Whole Food (WFM) least at-risk due to its product mix, differentiated format, strong EBIT margins and very strong balance sheet.

Morgan Stanley, however, doesn't see online as a major threat to brick and mortar food retailers after its own survey showed consumers’ interest in online ordering - either to be picked-up at store, or delivered to home - is very low.

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Comments (9)
  • William Gary
    , contributor
    Comments (15) | Send Message
    If Amazon can get Amazon Prime (hence the name) Pantry down to 2 day delivery it would get a bigger chunk of the grocery budget. It takes FIVE DAYS from ordering, and this is from the company that spoiled us with 2 day delivery. I don't understand why they would use the Prime brand for something that doesn't include 2 day shipping or faster (Instant for example digital downloads).
    25 Jun 2014, 07:41 PM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (713) | Send Message
    I really don't want someone else picking out my food. It's worth it to personally go to the store and pick what I want. I don't think grocery stores have much to worry about. It might be handy for homebound folks, though.
    25 Jun 2014, 08:56 PM Reply Like
  • William Gary
    , contributor
    Comments (15) | Send Message
    It's not food its dry goods. Dry good alone they can make a fortune and when you consider the prices grocery stores charge for Cereal, for example, there's an opportunity.
    3 Jul 2014, 06:07 PM Reply Like
  • Budavar
    , contributor
    Comments (1418) | Send Message
    Think of Alibaba coming much faster than faster - pun intended = grocery deliveries by AMZN.


    That Ali which had a reported $3 Billion PROFIT last year, compared to AMZN's $0.59 P/S, a wit called a rounding error.


    Ali's IPO, per chance the largest in financial history - so far =
    $100 billion? 150? 200?


    Whilst AMZN management warned about a LOSS in the upcoming Q report. And pundits forecasting a huge loss for its smart phone entry.
    25 Jun 2014, 11:33 PM Reply Like
  • Shaduc
    , contributor
    Comments (3021) | Send Message
    That is what the Cn high-speed rail is used for to deliver farm-picked produce and meats across the nation (bought on Tmall), as well as develop the hinterland.


    I wonder why Californias don't see this ...
    26 Jun 2014, 01:17 AM Reply Like
  • Ian Ringrose
    , contributor
    Comments (22) | Send Message
    In the UK, even in the middle of nowhere, I have the option of at least 3 supermarkets that will deliver for under £5. I can book a 1hr slot the night before and have food arrive at my door when I wish.


    Do I take it that the USA does not have supermarkets with understand the web?
    26 Jun 2014, 04:09 AM Reply Like
  • William Gary
    , contributor
    Comments (15) | Send Message
    We only have "pilots" that have a positive response but somehow never goes nationwide.
    3 Jul 2014, 06:09 PM Reply Like
  • sodajerk
    , contributor
    Comments (64) | Send Message
    Given the trend toward urbanization and dual income families, it just seems far fetched to me that there's a big niche waiting to be filled by Amazon in the grocery biz.


    As stated above, I'd much rather pick out my own food and know that it's fresh to my refrigerator and not sitting in a van somewhere.


    I know Amazon wants to be our everything - but they're not and never will.
    26 Jun 2014, 07:47 AM Reply Like
  • Newbigtech
    , contributor
    Comments (91) | Send Message
    Online Grocery has been around for years.. In The Phoenix area, It's a $5 Charge from every major store.. except Walmart.


    This is no big deal for Amazon to enter the market...
    29 Jun 2014, 03:44 PM Reply Like
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