USA: Amazon is pushing organic
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Step by step, the online trader is widening its presence in the American organic market after the merger with Whole Foods Market. The Whole Foods range 365 Every Day Value is playing a big part in this expansion.
After acquiring Whole Foods (read our earlier report) Amazon distributed orders for their entry price range to the value of 11 million US dollars (8.9 million euros). But that's still quite modest in comparison with established supermarkets - for example, the revenues of Kroger and Albertsons from the sales of their organic own-brand products are nearly 2 billion dollars (1.6 billion euros) and 1 billion dollars (0.8 billion euros).
Currently, organic products account for only 3% of Amazon's total turnover of food (2 billion dollars). However, analysts are predicting considerable growth in organic sales by AmazonFresh and they expect the proportion of organic turnover will reach double figures over the next five years. The media have reported that in the last four months AmazonFresh's turnover has increased by 35%.
Amazon-Whole-Foods advertises its offer with a free delivery service for online organic orders and an ultra-fast service within one hour. They have gone even further and lowered some of their prices.