Kroger stock falls after Amazon announces major grocery expansion

Investing.com -- Kroger (NYSE: KR) stock fell 3% Wednesday morning after Amazon (NASDAQ: AMZN) announced a significant expansion of its grocery delivery service, potentially threatening traditional supermarket chains.

The e-commerce giant revealed it has expanded fresh grocery delivery to more than 1,000 cities and towns across the United States, with plans to reach over 2,300 locations by the end of 2025. Amazon’s Same-Day Delivery service now includes thousands of perishable food items such as produce, meat, seafood, dairy, baked goods, and frozen foods alongside millions of other products already available on its platform.

This expansion represents one of Amazon’s most significant moves in the grocery sector, as it integrates fresh food items into its existing logistics network that’s already optimized for speed and efficiency. The service offers free Same-Day Delivery for Prime members on orders over $25 in most cities, while non-Prime customers can access the service for a $12.99 fee regardless of order size.

"We’re continuously innovating to make grocery shopping simpler, faster, and more affordable for our customers, especially Prime members," said Doug Herrington, CEO of Worldwide Amazon Stores. "By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick and easy experience for customers."

Amazon reported that early adoption in test regions showed strong popularity among Prime members, with strawberries now consistently ranking among the top five best-selling products across all categories.

The move intensifies competition in the grocery delivery space, potentially impacting traditional supermarket chains like Kroger that have been working to expand their own digital offerings and delivery capabilities.

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