Size matters. Even if all parts of your game aren’t strong, leveraging heft and scale can cover a lot of mistakes. Now that Amazon has moved on from the failures of “Fresh” and “Go” (as well as other non-food brick-and-mortar ventures), it can concentrate on using its might and technological skills to move its grocery business forward.
And during his conference call with financial analysts following another stellar quarter, CEO Jassy provided some insight about how much its grocery business has grown over the past years, primarily from digital gains. Jassy said that grocery unit sales grew 15 percent year-over-year, the best results since COVID. Additionally, more than 600 new brands were introduced and at an estimated $150 billion in annual revenue now ranks second to only Walmart in national market share.
Perishables sales have been particularly robust having grown over 40x year-over- year and now make up nine of the top 10 most ordered items for same-day delivery where the service is available. Customers shopping same-day build larger baskets, adding nearly 3x as many items to their order and spending over 80 percent more than customers who do not, Jassy stated, adding that Whole Foods also continues to accelerate with over 550 stores today and 100 more coming in the next few years.
“We remain committed to meeting or beating other retailers on price.”
As for the rest of the balance sheet, the fundamental numbers don’t lie, Amazon is stronger than it ever has been. Net sales increased 17 percent to $181.5 billion in the first quarter ended March 31, compared with $155.7 billion in first quarter 2025. Excluding the $2.9 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 15 percent compared with first quarter 2025. Strongly contributing to those revenue gains was a staggering 28 percent increase at its Amazon Web Services (AWS) unit where quarterly sales reached $37.6 billion.
On the earnings side of the ledger, the results were equally impressive. Operating income increased to $23.9 billion in the first quarter, compared with $18.4 billion in first quarter 2025. And profit at AWS was $14.2 billion compared with $11.5 billion in first quarter 2025 (talk about margin!).
“We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth,” said Jassy. “AWS is growing 28 percent (our fastest growth in 15 quarters) on a very large base, our chips business topped a $20 billion revenue run rate (growing triple digits year-over-year), Advertising grew to over $70 billion in TTM revenue, and unit growth in our stores reached 15 percent. We also hit exciting milestones with delivery speed (more than 1 billion items same-day or overnight in 2026 and counting).”
‘Round The Trade
In the never-ending soap opera that surrounds Market Basket, the Tewksbury, MA-based powerhouse regional chain announced that Chuck Casassa has been named president of the 92-store merchant, replacing interim CEO Donald T. Mulligan who retired last month after 43 years with the company. Mulligan, Market Basket’s long-time CFO, was elevated to the top job after the board of directors fired longtime chief executive Arthur T. (Artie T.) Demoulas last September.
Casassa’s ties to Market Basket run deep, having started with the company in 1976 as a bagger at the age of 14. “He rose through the ranks, serving as a front-end manager, merchandiser, and assistant manager before being promoted to store manager in 1987, the Tewksbury-based company said. In 2017, Casassa climbed the ladder again, this time to the role of grocery supervisor overseeing more than 25 stores,” a statement from Market Basket said. Last year, he was promoted to director of operations.
But before we got to this point in early May, let’s go back a month earlier when J. Travis Chandler, vice chancellor of the Delaware Chancery Court, ruled that the current board of directors of Market Basket (Demoulas Supermarkets) acted properly in suspending and ultimately firing former CEO Artie T Demoulas last year. The current board consists of only three board members, all loyal to Artie T’s three sisters who control 60 percent of the highly successful Tewksbury, MA-based regional supermarket chain’s shares (Artie T owns 28 percent of Market Basket’s stock).
In his 125-page ruling, Chandler noted that Arthur T. Demoulas “proved that he was a good operator and that the directors did not suspend or terminate him because of problems with the business. That, however, is not the only dimension of a CEO’s job. Nor is it all that directors can consider. The directors acted in good faith when initially suspending and later terminating the CEO. The business judgment rule protects their decisions. Judgment will be entered in their favor and against the CEO.”
As for the current board’s summary of the situation after the verdict was rendered, they noted in a statement: “With this behind us, we’re looking forward to continuing to focus on everything that makes Market Basket so important to our communities. As the board has said repeatedly, the company is not for sale. Market Basket will continue to be a family-owned and operated business, offering the lowest prices and best value for customers, creating good jobs with profit sharing for associates, and supporting its customers and communities – well into the future. We’re excited about all of that.” And in a seemingly sardonic conclusion, the board stated that it “thanks Mr. Demoulas for his many years of service and anticipates working with him productively into the future as one of the company’s important shareholders.”
Are meatpackers violating anti-trust laws? Once again, the U.S. Justice Department wants to know. The large federal agency confirmed its active investigation of potential antitrust violations in U.S. cattle and beef markets, reviewing more than 3 million documents and interviewing industry participants as federal officials scrutinize whether highly concentrated meatpacking power has contributed to high beef prices.
The four largest beef processors – Tyson, Cargill, National Beef and JBS, the latter two are Brazilian-owned – control more than 85 percent of the U.S. processing market. If there’s one industry that needs to be reformed, the clear target among both consumers and retail food executives would likely point to the Boys from Brazil.
Local Notes
Weis Markets held its annual shareholder’s meeting late last month at its corporate headquarters in Sunbury, PA. Chairman, president and CEO Jonathan Weis told a small group of shareholders that, while competition remains fierce, Weis more than held its own, especially when compared to its industry peer group.
“We are proud to report another strong year in 2025. Sales totaled $4.9 billion, while comparable store sales – excluding fuel – increased 2.1 percent. Net income totaled $94.1 million. These results reflect the strength of our business, the loyalty of our customers, and the dedication of our associates across the company… competition remains intense, and customer expectations continue to evolve. Today’s shoppers value convenience, speed, and a frictionless experience. They want quality, value, and the ability to shop when and how they choose. Meeting those expectations is essential – and it is an opportunity we continue to embrace,” the third-generation Weis family leader told the crowd.”
He recapped a busy and productive 2025 by noting opened that the regional chain cut the ribbon on five new stores (including three new builds and two conversions), opened five fuel centers and completed 11 remodels – six major projects and five minor ones. In 2026, Weis debuted another new store in Waldorf, MD, the first of two planned store investments this year. “We are also planning one expansion, seven major remodels, four minor remodels, and five new fuel centers, along with more than 1,000 additional smaller store and facility projects. Altogether, our capital expenditure budget will exceed $150 million,” Weis affirmed. “As we look to the future, I am confident in where we stand today. We have a strong foundation, a clear strategy, and talented people who care deeply about our customers and our company. Most importantly, we have momentum.”
Another larger regional chain suffered a rare earnings dip in its Q1 results. Publix Super Markets, a true bulwark of profitability, saw its profits dip 21.5 percent from $1 billion to $794 million during the 13-week period ended March 28. The Lakeland, FL-based supermarket merchant attributed part of that decrease to the impact of unrealized losses in equity securities.
Also contributing was the impact of the Medicare Maximum Fair Price (MFP) change, which on January 1 significantly reduced the price of 10 popular drugs. Overall sales at Publix’s 1,434 stores grew by 2 percent while comps were flat.
In related news, the retailer announced that executive chairman Todd Jones will retire, effective May 31. However, he will remain actively involved in the company as chairman of the Publix board of directors. The announcement caps a 46-year career at the company that began with Jones starting as a front-service clerk and culminated in his serving as the company’s top executive. Current Publix CEO Kevin Murphy (who succeeded Jones as chief exec) said his former boss’ contributions to the company will leave a lasting mark.
“We celebrate Todd’s 46-year career and are thankful for his exemplary service to our company, our associates and customers, and the communities we serve,” Murphy said. “In addition to being an outstanding operator and mentor, Todd has led with integrity and a deep commitment to our mission that will have lasting impact. We are grateful he will continue to provide leadership to Publix as our chairman.”
The retailer also announced that it will open a new store (likely next year) in Yorktown, VA. The 50,325 square foot unit will be Publix’s sixth store in the Hampton Roads area.
Giant Food will close its store in the Putty Hill Plaza on Belair Road in Parkville, MD on August 4.
Lastly, in my never-ending quest to highlight musicians who recently passed away and were great at their craft but sadly were underrated or unsung during their careers, I note the death of David Allen Coe, one of the wildest country musicians to have ever lived.
Coe, 86, truly embraced the country-music lifestyle. Growing up in Akron, OH, Coe was sent to reform school at the age of 9. He spent the next two decades in and out of juvenile and adult correctional facilities and when he was released from prison in 1967, he headed straight for Nashville. For a time, he lived in a hearse parked outside Ryman Auditorium, the home of the Grand Ole Opry.
Coe first gained fame as a songwriter, penning Tanya Tucker’s 1973 number one single “Would You Lay With Me (In a Field of Stone)” and writing Johnny Paycheck’s blockbuster hit “Take This Job and Shove It” (1977).
However, Coe’s biggest hit wasn’t one of his own tunes – “You Never Even Called Me By My Name” (1974) – written by the great John Prine and Steve Goodman. The tune seemed to capture the essence of what Coe called the perfect country music song. To wit: “I was drunk the day my mom got out of prison /And I went to pick her up in the rain /But before I could get to the station in my pickup truck /She got runned over by a damned old train /And I’ll hang around as long as you will let me /And I never minded standin’ in the rain /But you don’t have to call me darlin’, darlin’ /You never even called me by my name.” A man with a silky smooth voice and a great live performer to boot, David Allen Coe was truly an “outlaw cowboy
