Amazon Will Take on Walmart's Grocery Ecommerce Operations in Mexico

Amazon is taking on Walmart's Mexico operations by beginning sales of foods and beverages in the country, Reuters has reported.

The move, which will include snacks, sweets and wines, comes at a time when shopping online makes up only a fraction of total retail sales in the country, the news outlet stated. However, ecommerce sales have "grown swiftly," presenting a prime opportunity.

A quick look at the food and beverage page on Amazon's Mexico site shows an array of shelf-stable foods and beverages, dairy products, vitamins and supplements, and beer, wines and spirits. More than 40 brands are listed, from Perrier and Bob's Red Mill to Sal de Pompa, Calidad Bueno and Grupo Modelo Mexico.

"We're committed to offering our clients as many products as we can," Fernando Ramirez, Amazon Mexico's senior product manager, said in a statement published by Reuters.

Earlier this year, Walmart International stated its intent to expand its grocery ecommerce business in Mexico, with its CEO, Judith McKenna, stating that grocery delivery "will be an important part of that push," Reuters reported.

Current Mexico grocers that offer delivery include Soriana, La Comer and Chedraui, the news outlet said.

In the United States, Amazon originally launched free two-hour delivery from Whole Foods stores in February through its Prime Now delivery service, with the plan to begin in select markets and expand across the country through the rest of the year. This week, it expanded the service in Ohio, Oregon and New York, as well as the Washington D.C., metropolitan area. 

This week marked the one-year anniversary since Seattle-based Amazon officially took ownership of Austin, Texas-based natural and organic grocer Whole Foods. As a result of the transaction, Amazon now ranks No. 8 on Progressive Grocer's 2018 Super 50 list of the top grocers in the United States.