For online retailer Amazon (AMZN), getting a hold of the grocery store market has long been a challenge and a goal. Most knew something was up when Amazon got hold of Whole Foods, but now, things are picking up steam a little further. Amazon is pushing harder on its rollout of Amazon Fresh, and investors are not exactly happy about it. Shares are down fractionally in the closing minutes of 2024’s trading.
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Amazon rolled out a new Amazon Fresh location in Woodland Park, New Jersey, noted a CoStar report, which represented one of four such stores that would open throughout the United States that day. The store in New Jersey was substantial to say the least, with 59,000 square feet to its credit, even going so far as to offer free gift cards to the first 100 people through the door. With a line forming as early as 3:30 that morning, it was clear it was a big event.
It has made several such moves alongside that, including opening small-factor grocery stores, launching a line of private-label brands, and even stepping up its grocery delivery services. This, in turn, led market research operation Coresight to expect Amazon to “…continue causing market disruption in 2025 as it continues to grow its multichannel grocery model….”
More Labor Troubles
And with new properties and form factors comes new potential trouble from the labor that has to work at these locations. At the RDU1 warehouse in North Carolina, workers filed for a union election, which would make this warehouse the second unionized location for Amazon in the United States should it ultimately go through, according to a report from Indy Week.
Meanwhile, notes a report from The Nation, the Senate is getting involved with Amazon, as the Health, Education, Labor and Pensions (HELP) Committee—in the person of chairman Bernie Sanders—is taking aim at Amazon’s tendency to foster “…shockingly dangerous working conditions.” Though, with a new administration just weeks from taking hold, Sanders’ assessment may ultimately land on deaf ears.
Is Amazon a Good Long-Term Investment?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 45 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 47.4% rally in its share price over the past year, the average AMZN price target of $248.35 per share implies 12.93% upside potential.
