Amazon's moves to reduce strain on its grocery businesses by putting new online shoppers on wait lists and switching more Whole Foods resources to ...
Amazon's moves to reduce strain on its grocery businesses by putting new online shoppers on wait lists and switching more Whole Foods resources to filling orders, is unmasking limitations at the company that was expected to upend the supermarket industry.
"I'm really surprised that they weren't able to scale for this. I was expecting them to perform better. It seems like more than anything Amazon is a supply-chain company," said Ellen Sullivan, 37, a Chicago-based office manager. Whole Foods said its distribution network is strong and that it is working with suppliers to overcome increased demand and supply chain constraints without compromising quality standards that"further limit the number of products we can source".The world's biggest online retailer sent a shock through the stodgy U.S. supermarket business in 2017, when it bought Whole Foods for US$13.7 billion.
The company - which also delivers food from its own warehouses through Amazon Fresh - last month suspended its Prime Pantry delivery service for non-perishable groceries. Those companies - the top two U.S. grocery sellers - operate fleets of trucks and own dozens of large warehouses, while Amazon is more apt to outsource.
Walmart and Kroger, which have significantly more stores, have bigger distribution centers designed to swiftly move pallets of goods.
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