Amazon is making a significant push into the grocery market, threatening to disrupt traditional retailers like Walmart and Target. The e-commerce giant announced that Prime members in over 1,000 cities can now get free same-day delivery on fresh groceries for orders over $25. Amazon plans to expand this service to more than double its current reach by year-end.
CNBC’s Jim Cramer called this move the “Amazon factor,” suggesting it solidifies Amazon as the ultimate one-stop shop for consumers. He expects customers to buy everyday items like cleaning supplies, vitamins, and personal care products online instead of visiting physical stores.
Amazon’s delivery speed has improved significantly, with packages traveling 12% less distance and handling touches per unit reduced by nearly 15%. This efficiency is driving sales of Everyday Essentials, a business that outpaced the rest of Amazon’s offerings last quarter.
While it’s difficult to predict the impact on the industry, Cramer maintains his buy-equivalent rating on Amazon shares, citing its efficient delivery system. The company also plans further expansion in 2026, which could potentially disrupt traditional retailers even more.
Source: https://www.cnbc.com/2025/08/14/cramer-amazons-deeper-push-into-grocery-creates-a-new-narrative-for-the-company.html