In this file:
· Amazon has to 'figure out how to compete with Target and Walmart'
· Walmart Counters Amazon With Quick, Cheaper Delivery Service And More
· Report: Online grocery sales could double within four years
Amazon has to 'figure out how to compete with Target and Walmart'
Sara Dramer, Yahoo Finance
September 19, 2019
Amazon’s (AMZN) push for one-day shipping may not be enough to compete with the big brick-and-mortar retailers.
“Target (TGT) and Walmart’s (WMT) online sales are growing three times Amazon’s in the U.S. Forty percent pick up at store, they’re getting it same day. Amazon can’t do that. So they’ve got to figure out how to compete with Target and Walmart.” Ron Johnson, Enjoy CEO and former CEO of JCPenney (JCP), told Yahoo Finance’s The Final Round.
Amazon has changed the retail landscape over the past 25 years, but now the industry it disrupted is beating the company at its own game, he said. Johnson said that the company’s lack of physical locations is putting it a disadvantage.
“Once the physical companies took advantage of online shopping, fast shipping, pick-up in store, great technology, their traffic in stores is growing and their online is growing. So Amazon is kind of left out not having a physical footprint, and so they’re trying to compete with this fast delivery which is going to be very expensive for them.”
As Walmart and Target maintain rapid e-commerce growth, it’s clear that the merging of online retailing with traditional retailing is becoming more important in the success of a company’s e-commerce business...
Walmart Counters Amazon With Quick, Cheaper Delivery Service And More
Walter Loeb, Forbes
Sep 20, 2019
As even every school child knows, Amazon Prime has an annual price tag of $119. Now, Walmart plans to one up that and rush groceries for an annual fee of $98. So, it is now up to Amazon to respond – reduce its Prime membership fee to $98 in order to stay competitive or risk losing business.
In the meantime, Walmart thinks it can use its seven warehouses to match the 100 e-commerce warehouses. Walmart plans to deliver about 75% of its customers within the next day if the order has been placed by 3 pm. According to Marc Lore, CEO of Walmart e-commerce, “people think the more warehouses you have means the faster things are going to be”. He feels that Amazon’s decision to build so many warehouses is very expensive and may be inefficient. In contrast, he sees the power of using the thousands of Walmart supercenters throughout the United States to get products – especially groceries – to customers quickly and efficiently. Three quarters of the merchandise that is most in demand can be found in supercenter stores, and the rest of the SKUs can be shipped from any of the seven warehouses. As a result, fresh and frozen categories, along with a limited selection of general merchandise, can cost effectively be sent on this new membership plan.
I made a recent purchase on Walmart.com that was delivered the next day. It is evidence that the orders are filled quickly and efficiently; the use of smart computers is clearly working successfully behind the scenes. That works for me, because I certainly want to have my groceries quickly and in a fresh state.
Lore also indicated a change of direction for future acquisitions...
Report: Online grocery sales could double within four years
BY Al Urbanski, Chain Store Age
September 19, 2019
Grocery-anchored shopping centers have long been favored by real estate investors. Neighborhood centers without supermarkets average cap rates of around 8%, while ones with a grocery hover near 5%. The lower the cap rate, the more expensive the property, so grocery-anchored centers remain in high demand.
But a new study from Met Life Investment Management called “A New Dawn in Retail” predicts that online food sellers like Instacart, Amazon, and Peapod will cut more significantly into brick-and-mortar sales in the next few years. Now at 2.5% of market share, the e-coms could advance to a position of 7% or more by 2023.
Armed with data that allows them to customize their offerings to specific neighborhoods, grocers are already trimming their inventories and downsizing heir store footprints, the report noted. The average size of a Publix or a Whole Foods is 45,000 sq. ft., close to the minimum size for a grocery categorized as a supermarket. The average size of a Sam’s Club Now, a mobile-first shopping experience, is 32,000 sq. ft...