As the coronavirus pandemic has led to a surge in online orders, Amazon is now the country’s most popular grocery store, according to a recent study by the Dunnhumby Retailer Preference Index.
The online retail giant is ahead of big-box retailers such as Walmart and Costco, and fan-favorite Trader Joe’s. This is Amazon’s first year to claim the study’s top spot (finished third in 2020), with the company’s speed and digital performance being its main driving factors, according to the study.
Dunnhumby used a “COVID Momentum Metric system” to get results, which considers preference drivers, emotional connection and financial performance to get a RPI (Retailer Preference Index) score.
“COVID-19 created a perfect storm that played right into the unique strengths of Amazon’s customer value proposition,” Dunnhumby said in the study. “In Q2 of 2020, Amazon reportedly tripled their online grocery sales.”
When the coronavirus pandemic began in March, Amazon experienced an extreme surge in online orders. Amazon Fresh and Prime Now experienced delivery delays and unavailable inventory due to increased demand, while Prime Pantry temporarily ceased operations as a result of too many orders. Prime Pantry’s operations have since been permanently ceased.
Timely delivery from Amazon has since resumed, and Amazon Fresh is constantly offering daily deals on groceries.
The service is exclusive to Amazon Prime members, which costs $119 per year or $12.99 per month, and offers free shipping and fast delivery as two of the biggest membership perks.
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