Amazon Q3 Retail Sales Grow 2% as CEO Jassy Says Business "Slept On"

Amazon's online store net sales rose 2% year over year to $68.5 billion in the third quarter, while physical store net sales grew at the same rate to $5.7 billion, the company said Thursday. CEO Andy Jassy said investors underestimate the retail segment's progress, noting fresh groceries and everyday essentials grew three times faster than the rest of the store business. Jassy told analysts that customers using Alexa for Shopping spend 50% more per order than those who don't. The company moved Prime Day from Q3 to Q2 this year, making the year-over-year comparison tougher. Amazon also cut hundreds of jobs in its retail division earlier this month. "This is an important shift as it allows Amazon to win in a category that offers regularity and repetition," GlobalData's Neil Saunders said, adding it makes the fulfillment network more efficient and improves Prime's perceived value.