People walk past an Amazon Fresh store in Washington, DC, on August 26, 2021.People walk past an Amazon Fresh store in Washington, DC, on August 26, 2021.

Andy Jassy, the CEO of Worldwide Amazon Stores, announced Tuesday that Doug Herrington would be the new CEO.

Herrington joined Amazon in 2005 and has worked on the high-level S-team since 2011. He started on the company's consumables business, then launched AmazonFresh in 2007, and became the leader of the North American consumer business in 2015, according to Amazon. The loyalty program for mothers was one of the key programs developed by Herrington.

Dave Clark will step down as CEO of Worldwide Consumer on July 1st. Clark is the new CEO of Flexport.

Herrington was an expert in grocery. The company wants to aggressively expand into it. Amazon gained ground when he launched Amazon Fresh, its grocery delivery service, and Prime Pantry, another food delivery program that has since closed.

He is a key leader in the company. He is part of the S- Team, a group of over a dozen senior executives from almost all areas of Amazon's business.

Jassy said that the operations group would be brought under a single leader and that the consumer business would be changed to Amazon Stores. He has been at Amazon for 18 years and has served on the S-team.

Under the new structure, Felton, who has served in a variety of operations and logistical leadership roles at Amazon, will report to Herrington. The leads of Amazon's physical, international and North American stores divisions will be included in Herrington's other direct reports.

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Amazon has a multi billion dollar returns problem.