Amazon Closes Physical Stores to Focus on Same-Day Grocery Delivery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: Yahoo Finance
- Store Closures: Amazon is closing dozens of Amazon Go and Amazon Fresh physical stores to reallocate resources towards same-day delivery services, aiming to enhance customer shopping experiences and address competitive market pressures.
- Delivery Service Expansion: By focusing on same-day delivery, Amazon seeks to capture a larger share of the growing online grocery market, with expectations that this move will boost overall sales and enhance customer loyalty.
- Whole Foods Operations Enhancement: Amazon plans to further invest in Whole Foods operations, aiming to optimize the supply chain by integrating online and offline resources, thereby improving overall efficiency and meeting consumer demand for fresh food.
- Strategic Transformation: This decision to close physical stores reflects a significant shift in Amazon's retail strategy, aiming to adapt to the rapidly changing market environment and enhance competitiveness through technology-driven delivery models.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 238.420
Low
250.00
Averages
294.69
High
340.00
Current: 238.420
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
