Amazon push into grocery ‘requires monitoring,’ says Wells Fargo

After Amazon announced an enhanced fresh food offering, Wells Fargo said it’s hard to see the news as anything but an incremental negative for food and staples retail, though there are hurdles to winning in ultra competitive grocery. The analyst, who has an Equal Weight rating on the shares, says the move is not thesis-changing for staples retail, but requires monitoring. While the move looks like a concern for peers given the sheer size of the Prime member base, winning in grocery is not a layup for Amazon, the analyst says, adding that key questions remain on the breadth of the offer versus local grocery players. It’s also important to note that many customers already have grocery delivery options, the analyst tells investors in a research note.