Is Amazon.com getting ready to expand its Amazon Fresh to new markets?
During the company’s earnings conference call this afternoon, analyst Matt Nemer of Wells Fargo Securities said he has been hearing reports that Amazon is adding refrigeration equipment to some of its distribution centers outside of the Seattle area.
He asked Amazon CFO Tom Szkutak for an update on any plans to expand the grocery delivery business beyond its longstanding Seattle test market.
Szkutak didn’t confirm the refrigeration rollout or answer the question directly, saying that the company has “nothing to announce” at this point. “We’re very pleased with what we’ve seen in the Seattle area, but again it’s been a test and we continue to monitor that test carefully. Customers love the experience. The challenge has been making sure we get the economics right. That’s something we’ll continue to focus on.”
Amazon Fresh has been around since 2007 in the Seattle region. Two years ago Amazon CEO Jeff Bezos said the company was “still tinkering” with the economics to come up with a workable formula.