With the coronavirus pandemic showing no signs of dissipation in the near future, people are forced to stay indoors. This, in turn, has led to an increase in online sales of groceries.
Keeping in mind the growing demand for groceries and the scarcity of workers in the midst of the coronavirus epidemic, Amazon AMZN would offer higher wages to its warehouse staff for working in Whole Foods grocery stores.
The move will allow Amazon to expand its presence in the grocery industry. In addition, if the company is able to catch up with the surge in demand and deliver groceries on time during these difficult times, it will help people and inspire investor confidence.
Amazon.com, Inc. Price and Consensus
According to Bloomberg, Amazon is witnessing a spate of orders due to customers’ reluctance to visit retail stores for fear of contracting the virus. Although the company’s delivery capacity remains constant, the growing need to respond to overflowing orders is now becoming difficult.
Nevertheless, the Seattle giant has made brilliant efforts to meet demand by delivering essentials and groceries on time. The company’s strong focus on improving its fast delivery services is a key catalyst.
In this regard, Amazon recently announced plans to hire 100,000 new workers for warehouse and delivery services in the United States to meet increased demand during this stressful period.
In addition, the company has rolled out an initiative to improve the same day delivery program, making it available in the cities of Philadelphia, Phoenix, Orlando and Dallas for Prime members.
In addition, the company has built mini order processing centers which are one of a kind buildings. In particular, these new facilities are located closer to customers, which allows Amazon to reduce the number of hours taken to deliver orders via same-day delivery services.
The company’s day shipping and many other fast delivery services are worth noting.
Amazon offers online grocery services through Amazon Fresh and Amazon Prime Now. It has doubled in the grocery sector since the company acquired Whole Foods in 2017. It has expanded its grocery delivery services to more than 2,000 cities.
Growing pickup and delivery services for groceries, as well as the availability of Prime Savings in all Whole Foods and Whole Foods Market 365 stores in the United States, are key growth drivers.
In these turbulent times, fast delivery of groceries is a huge challenge for retailers and, therefore, companies like Amazon and its biggest competitor, Walmart Inc. WMT, are currently focusing on delivering these groceries. grocery store.
Amazon is currently wearing a Zacks Rank # 2 (Buy).
Long-term profit growth for Stamps.com and eBay is currently estimated at 15% and 11.56%, respectively.
In addition to the actions described above, would you like to know more about our top 10 buy and hold tickers for all of 2020?