According to The Wall Street Journal, sales at Amazon’s (NASDAQ:AMZN) grocery division, Amazon Fresh, grew 35% to $135 million in just the last four months of 2017, aided by the ecommerce giant’s acquisition of Whole Foods last summer.
But, according to digital and business strategy consultant Brittain Ladd, this is just the beginning. He predicts Amazon will be the largest grocery brand by 2030.
According to Ladd, Amazon is already laying the foundation to achieve this goal.
“The thing that Amazon will be working on is really expanding their grocery ecosystem,” Ladd told FOX Business’ Dagen McDowell on “Mornings with Maria.”
Ladd says Amazon has several potential options for achieving this goal, but one of the more interesting ones is through acquisitions.
“One of the retailers that stood out the most in the research was the possibility of Amazon actually acquiring Target (NYSE:TGT), opening Whole Foods markets inside Target stores, and then taking a look again at the map and balancing where they need additional stores. According to the estimation of the model it would be anywhere between 750 to 1,000 additional stores.”
Ladd explained that although it seems counterintuitive for Amazon to acquire another brick-and-mortar retailer it would actually benefit their online sales.
“What they’re really going to do is leverage the physical store presence to help them actually drive more sales online.”