Amazon CEO highlights growth and importance of retail business

Amazon's online store net sales increased by 2% year over year to $68.5 billion in the third quarter, while physical store net sales also grew 2% to $5.7 billion, according to Retail Dive.

CEO Andy Jassy emphasized the significance of Amazon's retail business during a Q3 earnings call, noting that many may underestimate the progress made in recent years.

Jassy highlighted that fresh groceries and everyday essentials grew three times faster than the rest of the store business, with customers using same-day delivery for perishables purchasing nearly seven times more essential items than those who do not.

GlobalData Managing Director Neil Saunders commented that this growth in perishables helps Amazon build customer loyalty, enhances fulfillment efficiency, and increases the perceived value of Prime and other services.

Additionally, Amazon has expanded Alexa for Shopping capabilities, with U.S. customers using Alexa spending 50% more per order than those who do not, according to Jassy.