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Amazon seemingly following retail third-party model with grocery, says BofA

BofA tells investors that Progressive Grocer reported late last week that users in the Jacksonville and Orlando, Florida metro areas can now shop Winn-Dixie’s grocery selection on Amazon.com (AMZN). Winn-Dixie is Amazon’s first local grocery partner in Florida, but 17th nationwide, per Supermarket News, according to the analyst. Amazon appears to be developing its grocery capabilities with a two-pronged approach – signing local grocery partners like Winn-Dixie while simultaneously building its own first-party grocery offering – says the analyst, who adds that this approach would be similar to how Amazon scaled Retail and AWS and will likely enable Amazon to fill more rapidly near-term geographic or product gaps in its grocery offering without major store investment. The firm maintains a Buy rating and $272 price target on Amazon shares.

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