Amazon (NASDAQ:AMZN) has boosted its presence in Florida by striking a deal with Winn-Dixie to make the grocery chain’s products available for delivery through Amazon’s (NASDAQ:AMZN) website and app.
The collaboration will impact customers in the greater Jacksonville and Orlando metropolitan areas, who will have delivery options through Amazon (AMZN) for Winn-Dixie’s fresh produce, quality meats, private-label brands, local favorites, and specialty items. The new offering includes more than 16,000 items across multiple categories.
Winn-Dixie is a well-known American supermarket chain headquartered in Jacksonville, Florida. The privately owned company operates approximately 400 stores in the United States.
“By bringing Winn-Dixie’s selection to Amazon, we’re giving customers in Jacksonville and Orlando more choice and flexibility in how they shop for groceries, all with the convenience of Amazon delivery,” noted Amazon (AMZN) executive Sophie Turrell.
Weighing in on the development, Wedbush Securities analyst Scott Devitt said the firm believes this is the first time Amazon (AMZN) has experimented with testing an intermediary grocery offering. The partnership is seen competing directly with Instacart (CART).
“We view today’s announcement as an incremental step forward in Amazon’s broader strategy to capture share in the category. Notably, Amazon can meet logistical challenges faced by many grocery retailers, which have typically been addressed by third parties, such as Instacart,” wrote Devitt. The firm thinks Prime has become an even more compelling subscription for grocery shoppers based on the report.
Related grocery stocks: Kroger (KR), Albertsons Companies (ACI), Sprouts Farmers Market (SFM), Target (TGT), and Walmart (WMT).