Hey LA, Amazon.com, Inc. (AMZN) Wants to Be Your Grocer!

Page 2 of 2

My Foolish conclusion

I’m skeptical of whether online grocery shopping at Amazon.com, Inc. (NASDAQ:AMZN) will encourage customers to include other higher-margin, general merchandise items in their purchases. British grocers, who have been offering online grocery shopping for years, have recently noted sustained, rapid growth in their online grocery business, yet sales of general merchandise have lagged in comparison. This may be due to current economic conditions in Britain, which may be limiting spending on discretionary items.

If Amazon.com, Inc. (NASDAQ:AMZN)’s venture into online grocery shopping succeeds and the service expands to other areas of the US, this could trigger changes at food retailers to offer online grocery shopping or alter their current online services. Consumers are known for spending more online, so providing a variety of online grocery shopping options could boost sales at grocery chains over the long term.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

The article Hey LA, Amazon Wants to Be Your Grocer! originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2