Amazon shares closed in the red Tuesday as JP Morgan analysts said they anticipate Amazon’s domestic US sales to match those of Walmart by 2021. The global retailer is expected to continue its rapid growth, supported by its popular Prime programme and additional member benefits.
Amazon shares ended the US Tuesday trading session 1.59% lower at $1,576.12. The stock is also lower in after-hours trade.
Positive US sales outlook for Amazon
Amazon has been growing at an impressive clip with expansions and investment across a variety of sectors. However, it has managed to do this while still providing customers what they want at the price they want it. And, it’s this ability which is behind JP Morgan’s continued upbeat assessment of the tech giant.
“Amazon is the second-largest US retailer and fastest growing at scale,” JP Morgan analyst Christopher Horvers wrote in a research note to clients.
“We believe key drivers of Amazon's share gains include: the Prime ecosystem; endless aisle driven by third-party seller expansion; outsized growth in large, underpenetrated categories; and removing friction and moving closer to customers,” Horvers added.
Horvers heaps further praise on the Prime scheme, including that it’s a difficult programme for other businesses to replicate particularly given the scope of its same-day and two-hour delivery abilities.
Whole Foods discounts for Prime members
Highlighting just why customers like Amazon Prime so much is Jeff Bezos’ latest decision to give members a 10% discount on Whole Foods sale goods and additional, deeper discounts on other selected items.
“This new Prime benefit at Whole Foods Market is a perfect pairing of healthy and delicious food at even more affordable prices,” said Amazon Prime VP Cem Sibay.
“Our vision is that every day Prime makes your life better, easier and more fun, and shopping at Whole Foods Market with exclusive deals and savings is all of this and more,” Sibay added.