Amazon (AMZN – Free Report) is sparing no effort to strengthen its position in the UK retail sector through the strengthening of its delivery network.
This is evident from its latest delivery initiative via bikes and feet in London, which marks its first such initiative in the UK.
Notably, the e-commerce giant launched its first-ever fleet of electric cargo bikes and a team of foot delivery people in the country. The intention behind this is to reduce traffic congestion on London’s roads by replacing several delivery van routes with e-bikes and walking delivery agents.
Starting in central London, delivery drivers will ride e-bikes and walk to customers’ delivery locations.
We believe the introduction of e-bikes would speed up deliveries, as they will be able to move quickly on congested London roads.
Benefits of moving
The latest move expands the company’s e-commerce prospects in the UK as it will help it deliver an improved shopping experience to customers, which, in turn, will likely increase customer purchase rate. on its online retail platform.
The launch of e-cargo bikes bodes well for the company’s last-mile delivery strategy.
The move will boost Amazon’s online sales in the country, which will be reflected in its overall near-term revenue growth.
With such a fast delivery initiative, along with a strong network of third-party sellers and ever-growing availability of multiple products on its platform, Amazon remains well positioned to capitalize on the growth prospects of the UK e-commerce market. -United.
According to a report by Statista, revenue from this particular market is expected to reach $199.9 billion in 2022. Additionally, the figure is expected to see a CAGR of 12.6% between 2022 and 2025 and reach $285.6 billion in 2022. 2025.
Along with the retail benefits, the initiative for e-bikes and walking delivery teams, which would make emissions-free deliveries to customers, is in line with Amazon’s aggressive efforts to reduce its carbon footprint at home. global scale.
Notably, the company aims to achieve net zero carbon emissions by 2040. It has increased its investments in renewable energy projects in recent years, which has accelerated the pace of its journey to powering its infrastructure with 100% renewable energy. The goal was initially to be achieved by 2030, which is now expected to be achieved by 2025.
Growing efforts in the UK
Besides the latest move, the company’s opening of the Amazon Fresh store, with “just walk out” technology, in London remains noteworthy. The store offers several groceries of different brands. The company offers a cashier-less shopping experience to its customers through this store.
The introduction of Amazon Fresh Marketplace in the country and the growing momentum overall remain major positives. The company provides an Instacart-like service to customers using the highlighted equipment. Prime members can order groceries from two major supermarket brands in the country using the Amazon app and enjoy same-day delivery service.
Another bright spot is the company’s partnership with UK clothing store Next plc to offer parcel collection options to its UK customers.
Note that Amazon has Internet-equipped counters in Next stores where customers can pick up their wrapped parcels. To facilitate this, the company is delivering several orders placed by UK customers to its Next stores.
We believe that all of these efforts will continue to help Amazon quickly enter the growing UK retail market. Moreover, its growing focus on business expansion in the underlined country, which is considered one of its main markets, should keep investors optimistic about the stock in the near term.
Notably, Amazon has lost 34.3% since the start of the year.
Zacks Ranking and Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the retail and wholesale sector are The Kroger (KR – free report), Solo brands (CPD – free report) and AutoNation (A – free report). While Kroger and Solo Brands currently sport a #1 Zacks rank (strong buy), AutoNation wears a #2 Zacks rank (buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Kroger has gained 6.3% since the start of the year. The long-term earnings growth rate for KR stock is currently projected at 11.27%.
Solo Brands has lost 73.3% since the start of the year. DTC’s long-term earnings growth rate is currently projected at 16.74%.
AutoNation has lost 1.7% since the start of the year. The long-term earnings growth rate for AN shares is currently projected at 24.74%.