Client Letters: Amazon CEO Andy Jassy on CNBC: “We see people trading down on ASP wherever they can”

Thought it would be worthwhile to shoot over a few quotes from Amazon CEO Andy Jassy that were part of an interview this morning (April 11, 2024) on CNBC:

• “We see consumers are spending but they are being careful.”

• “Wherever they can, they are trading down in average selling price. You see consumers wherever they can find a deal, they will take the deal.”

• Discretionary purchases difficult with our share growing but lower than in a healthy economic environment.

As you have heard from the team and I over the last several months, this narrative is not new. However, these comments do confirm what we have been seeing. Whilst not fun to hear, it provides the context to make different decisions and shift where necessary.

We continue to commit to you that we will provide ideas, recommendations and new tools to mitigate the weakness.

Thank you,

Ryan