Amazon.com Inc. AMZN continues to expand its market share in the online grocery space. Mexico is the latest addition to the list of countries receiving its online groceries.
The company’s new Mexico site, which was officially launched in 2015, will offer food items like coffees, teas, liquors, wines, cooking ingredients and non-perishable snacks.
Other items available on its Mexico site include shelf-stable foods and beverages, dairy products, vitamins and supplements, as well as beer, wines and spirits.
Undoubtedly, this new endeavor will augment its online presence and fend off competition from the supermarket giant Wal-Mart Stores, Inc. WMT. The new destination will also help the company attract more customers to its Amazon Prime program, which is a significant revenue source.
Stock Performance
Amazon is one of the largest online retailers in the world, with extensive operations in North America. Although Amazon’s primary product line was of books, it has diversified into a host of other product categories and now wants to establish a global presence.
Shares of Amazon moved up 0.2% from the previous trading session, closing at $2,002.38.Also, it has outperformed the industry it belongs to on a 12-month basis. The company’s shares have gained 104.4% compared with the industry’s growth of 45.8% in the said period.
Bottom Line
Notably, Amazon is making aggressive efforts to expand in the booming online grocery space. Its strategies like Amazon Go grocery stores underscore its focus on exploiting each nook and cranny of the retail food space.
Apart from this, Amazon Prime members already enjoy free two-day and one-day deliveries. Amazon Restaurants offer one-hour delivery for Prime members from popular restaurants. Amazon Fresh grocery delivery service can fulfill orders within 15 minutes if users pay $15 per month.
Amazon’s rising dominance and expansion in the grocery space has made most retailers trepidatious, thus compelling them to make efforts to combat the intense competition.
In order to keep pace with the evolving consumer demand and stand strong amid a tough environment, many big companies including Walmart have also been undertaking several e-commerce initiatives, including buyouts, alliances, along with improved delivery and payment systems to expand their share in the grocery market.
Zacks Rank and Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Infineon Technologies AG IFNNY and JD.com, Inc. JD, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Infineon Technologies and JD.com is currently projected to be 7.5% and 23%, respectively.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment