Amazon announced the first quarter financial results for 2021 boasting a 224% increase in net … [+]
Amazo AMZN n announced first quarter financial results for 2021 boasting a 224% increase in net profits with sales revenue up 44% over last year to $108 billion. Amazon Web Services (AWS) is a key driver of Amazon’s profit accounting for 47% of operating income on 12% of total revenue. The company continues to expand AWS services across various industries and recently announced a further expansion with Disney+ which has over 100 million subscribers. Through AWS technology, the Walt Disney Company DIS has been able to rapidly expand Disney+ to 59 countries across North America, Europe, Asia Pacific and Latin America. Brian Olsavsky, CFO of Amazon, said, “There is continued interest from a variety of industries to expand services with AWS and we anticipate this to continue moving forward.”
Amazon Web Services revenues in the first quarter were 32% higher than last year.
Over the past 15 years, AWS has become a widely adopted cloud platform across many industries and includes more than 200 fully featured services that focus on many different technologies such as artificial intelligence (AI), Internet of Things (IoT), computing, storage, networking and analytics to name a few. AWS currently serves over 190 countries with plans of expansion. Its revenues in the first quarter were 32% higher than last year.
Walmart’s WMT revenue grew to $559 billion in 2020 compared to Amazon’s $386 billion, placing them as the top retailers in the market. Costco reported $163 billion in revenue while Kroger KR delivered $132 billion for the same period. These top retailers sell grocery items and Amazon has begun to enter the market in a meaningful way which may help to boost future sales and deepen customer loyalty.
Amazon FRESH is a new large format grocery store
Amazon has five grocery store formats that will serve a broad market including Whole Foods (which targets the higher-end niche markets), Amazon FRESH (a new large format grocery store), Amazon Go Grocery (a medium grocery store), Amazon Go (a small convenience store format) and Key by Amazon In-Garage Grocery Delivery.
Amazon recently announced this month that Key by Amazon is expanding to everywhere grocery delivery from Amazon is available. Originally launched and tested in five cities, the service will be expanded to over 5,000 U.S. cities and towns. Prime members can have their Amazon Fresh and Whole Foods Market WFM groceries delivered securely and conveniently inside their garage. Pete Gerstberger, head of Key by Amazon, stated, “As customers look for more convenience in their daily lives, we’re excited to deliver another service that not only helps them save time, but provides peace of mind knowing that tonight’s dinner is safe in their garage and out of the weather.”
Accenture ACN COVID-19 Consumer Pulse Research suggests that the shift towards e-commerce is likely to be permanent or even accelerate further. Online purchases for products by new or infrequent e-commerce users have increased by 343% since before the pandemic according to participants across 19 countries. Key areas of increased purchasing include clothing (including footwear and accessories) up 375%, consumer electronics up 359% and personal care items up 350%. Jill Standish, global head of retail of Accenture, said, “Even in a post-pandemic world, companies will need to satisfy consumers’ appetites for online shopping with fast delivery and get more intentional about the investments they will make in their people, supply chains, physical stores, and digital channels to be well-positioned to drive growth.” Of consumers surveyed, 28% said they will make permanent changes to the way they shop, once the pandemic subsides.
Throughout Amazon’s rapid expansion over the past decade, the company has also moved up in its ranking of best places to work. LinkedIn, with over 740 million members, recently named Amazon the No. 1 company where Americans want to work in 2021, up from No. 3 in 2019. LinkedIn’s Top Companies list is designed to help professionals identify the best companies to grow their careers. Beth Galetti, Amazon’s senior vice-president of people eXperience and technology at Amazon, stated, “Amazon is a culture of innovation. We are inventors at heart and provide our employees with an opportunity to think big and try things that have never been done before.”
Amazon.com is raising wages for its hourly employees after a majority of workers at one of the e-commerce giant’s warehouses voted not to unionize. Over 500,000 of its employees will see pay increases of between 50 cents and $3 an hour. Amazon, which offers a starting wage of $15 an hour and employs roughly 950,000 people in the U.S., said the raises represented an investment of more than $1 billion. In 2020, Amazon created more than 400,000 jobs in the U.S. and 500,000 globally. Paying fair wages can cultivate an environment of high engagement with employees. Galetti said, “Being Earth’s Most Customer-Centric company and Earth’s Best Employer are two sides of the same coin—we’re able to obsess over customers because we’ve created a great work environment for our employees.”
I have over 25 years of experience in the retail industry across many functions including general management, marketing, operations, merchandising, buying, and human
I have over 25 years of experience in the retail industry across many functions including general management, marketing, operations, merchandising, buying, and human resources. I am an associate professor at Fashion Institute of Technology, Chief Strategy Officer at The Robin Report and CEO/founder of my consulting business. I teach at Syracuse University in Martin J. Whitman School of Management. As a recognized top retail influencer, I have appearances across many media outlets including NBC Nightly News, Forbes.com, Wall St. Journal, New York Times, Women’s Wear Daily, Reuters, The Washington Post, Fortune, and Chain Store Age. I am a contributor to Forbes.com, The Robin Report and a member of the BrainTrust for RetailWire. My interdisciplinary education includes an M.B.A. in Strategic Business Administration from Penn State University, a B.S. in Organizational Behavior from University of San Francisco and an A.S. in Fashion Merchandising and Buying from Fashion Institute of Technology.