Amazon reports slowest retail sales growth since 2019

Amazon’s core retail business has experienced a 15 per cent sales growth rate, the slowest since 2019.

The growth rate was lower than analyst expectations and the company’s shares dropped 7 per cent after its financial results were published.

The e-commerce giant attributed the results to consumers doing “things besides shopping”, as pandemic restrictions have loosened.

However, Amazon reported overall revenue growth of 27 per cent to $113 billion for the quarter ending June, with its cloud computing division, AWS, and its advertising business performing strongly.

Profits for the quarter rose 48 per cent to $7.8 billion.

Amazon remains a dominant force in UK online retail, accounting for more than a quarter of all UK online spend, according to a report from Wunderman Thompson Commerce released earlier this month.

The news comes after Amazon founder Jeff Bezos formally stepped down from the role of chief executive at Amazon on 7 July.

Andy Jassy, who previously served as head of AWS, is set to lead the company going forward.

"Amazon is increasingly bumping up against the law of large numbers - particularly in US retail,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown. "When you're only selling $1,000 of product a year, boosting sales by 40 per cent is easy.”

He added: "When your annualised sales reach $400 billion, finding an extra $160 billion of sales is pretty difficult."

    Share Story:

Recent Stories

Find out how HULFT can help you manage data, integration, supply chain automation and digital transformation across your retail enterprise.
Talking shop: retail technology solutions from Brother
Retail Systems editor Peter Walker sits down with Brother’s senior commercial client manager Jessica Stansfield to talk through the company’s solutions for retailers and hospitality businesses, what’s new in labelling technology, and the benefits of outsourcing printing.