Amazon says it's the 2nd-largest grocer in U.S.

Amazon, the e-commerce and cloud-computing behemoth, is the second-largest grocer in the U.S., according to the company's CEO Andy Jassy.

On an earnings call with analysts Wednesday, Jassy touted the company's rank, saying Amazon's grocery business brought in more than $150 billion in revenue last year.

It's not the first time Jassy has boasted about the company's place as a grocer. Last year during an earnings call, he said that with just its online and delivery business, Amazon was among the top three grocers in the country. That excluded revenue from Whole Foods markets.

The distinction may be important, as Amazon has had a lumpy journey with physical retail under its own brand name. At one point, the company was rolling out Amazon Go convenience stores and Amazon Fresh stores across the country, including three Fresh locations in Seattle. The company showed modest growth in physical retail, but analysts remained unsure whether it was connecting with customers.

After tinkering with the format of the stores two years ago, Amazon shuttered its brick-and-mortar stores entirely this year. Amazon said the move was to focus on grocery delivery and its subsidiary, Whole Foods.

Since then, the company has leaned fully into convenience to lure customers to its grocery business. Amazon announced in December that it was piloting a program to deliver groceries and other household items to customers in 30 minutes or less, called Amazon Now. The company initially said it was testing the program in certain areas of Seattle and Philadelphia.

Amazon has quietly snapped up small, nondescript retail locations in Seattle to flesh out the network, with permits filed under the name Project Peregrine."

So far, Amazon has planted the 30-minute delivery sites in Seattle's Ballard, South Lake Union, University District and Northgate neighborhoods, according to permit applications filed with the city. The company has also filed plans for a site in Bellevue near the Spring District.

Jassy said groceries - or perishables as Amazon categorizes them - are exploding in popularity on the company's e-commerce site, with perishable items accounting for nine of the top 10 most ordered items for same-day delivery.

Amazon is seeing the grocery business build revenue momentum for the rest of its e-commerce division. Just as Prime members have generally tended to buy more products than nonmembers, grocery customers are following a similar trend.

"Customers shopping same-day perishables build larger baskets, adding nearly three times as many items to their order and spending over 80% more than customers who do not, Jassy told analysts Wednesday.

Amazon is pushing online delivery, but it hasn't fully given up on physical retail and is even looking to expand the Whole Foods brand. Jassy said there are more than 550 Whole Foods stores right now and that Amazon has plans for 100 more over the next few years.

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published April 30, 2026 at 4:51 PM.