And Amazon faces a "last mile" logistics problem of getting fresh food to doorsteps that it doesn't with other goods. Making sure fresh groceries stay that way through transit is challenging yet crucial for attracting shoppers. "The grocery industry is a low-margin business and last mile logistics make margins even more challenging," she said. Recent commodities deflation has forced grocery stores to slash prices on such staples as milk, beef and eggs. Amazon's 'last mile'NPD Group Inc. food analyst David Portalatin said the Whole Food stores would solve much of "Amazon's 'last-mile' delivery challenge for fresh groceries."

Source: Wall Street Journal June 19, 2017 06:56 UTC