In this file:

 

·         Amazon Is Losing Loyal Shoppers to Walmart. Here's What to Watch for This Holiday Season

Looks like Walmart has something to smile about.

 

·         Amazon's New Grocery Chain Shouldn't Worry Rivals -- Yet

The online giant has yet to prove it can effectively fight in the physical retail market.

 

 

Amazon Is Losing Loyal Shoppers to Walmart. Here's What to Watch for This Holiday Season

Looks like Walmart has something to smile about.

 

By Scott Mautz, Inc.

Nov 8, 2019

 

Retail giants Walmart and Amazon have been competitors for many years now, with Walmart arguably on its heels for most of it. But the tide might be turning, according to a recent survey conducted by First Insight, a retail analytics firm.

 

As CNBC reported, First Insight surveyed 3,000 consumers starting in December 2017 through this September. They found that the frequency of people buying items on Amazon six times or more per month has dropped to 40 percent, down from 80 percent in 2017, with Walmart the benefactor. In fact, 55 percent said they prefer to shop at Walmart versus Amazon, up from 47 percent just a year ago. Those preferring to shop at Amazon dropped to 45 percent, down from 53 percent.

 

When 265 million people shop at Walmart each week and Amazon has 100 million Prime members, each percentage point can feel like a tidal wave of a shift.

 

Why the shift is happening.

 

First Insight CEO Craig Petro told CNBC he believes the shift is happening because the novelty and excitement of receiving that Amazon box on your front porch is wearing off. He also believes that something else is working to Walmart's favor that you just wouldn't expect --speed. Says Petro, ″Walmart's speed is allowing them to leapfrog and get hyper-competitive with Amazon in a short period of time."

 

This is particularly true in the raging battleground that is home grocery delivery. Walmart recently announced it's expanding home grocery delivery to 1400 stores after a brief test earlier in the year --it will undoubtedly be able to leverage its many more stores in the future. This is meant to compete against Amazon's recent announcement that they were making two hour grocery delivery available for Prime members.

 

The point that Walmart is moving fast shouldn't go unappreciated. Working at Procter & Gamble for 24 years, I called on the Bentonville behemoth many times and was always astonished at how slow they were in implementing change. E-commerce changed all that. I watched them buy online retailer Jet.com and use it as a base to build upon for e-sales.

 

They moved with a speed I hadn't seen before launching test after test in e-commerce, overhauling their online selling platform and demanding change after change from their manufacturing partners to keep pace and to help accelerate the e-push. E-commerce sales were up 37 percent in the latest quarterly earnings report.

 

What it means for the holidays ...

 

more, including links

https://www.inc.com/scott-mautz/amazon-is-losing-loyal-shoppers-to-walmart-heres-what-to-watch-for-this-holiday-season.html

 

 

Amazon's New Grocery Chain Shouldn't Worry Rivals -- Yet

The online giant has yet to prove it can effectively fight in the physical retail market.

 

Rich Duprey, The Motley Fool 

Nov 7, 2019

 

Reports last month that Amazon.com (NASDAQ:AMZN) had signed leases for its new grocery store chain that is separate from Whole Foods failed to disturb its rivals in the way that prior announcements of its moves into physical retail have.

 

While that's partly because the original news about the new-concept chain was first released earlier in the year, it's also because many of its rivals may not seem to fear Amazon's presence as they once might have.

 

Brick-and-mortar retail is proving more of a challenge to Amazon than many thought it would, and grocers like Walmart (NYSE:WMT) and Kroger are well fortified to resist an assault on their position.

 

A whole new world

 

The Wall Street Journal reported that Amazon had signed more than a dozen leases for new supermarkets in the Los Angeles area alone, and it plans to open in Chicago and Philadelphia, too. Because it wants to expand its reach with customers, it wants a chain of grocery stores in major metropolitan markets all across the country.

 

Amazon's acquisition of Whole Foods Market in 2017 shook the food industry -- from supermarkets to consumer packaged-goods companies -- as everyone feared having to square off directly against the online retailer. Shares of Kroger and Target both dipped, and smaller operators such as Sprouts Farmers Markets and Ingles Markets saw their stocks plummet on the news.

 

Two years later, though, Amazon's positioning for a relative imminent opening of new stores barely causes a ripple. Undoubtedly smaller chains still need to be concerned because the supermarket business already operates on very narrow margins, but there's no reason for the grocery giants to worry, at least not yet.

 

A constantly evolving strategy ...

 

The high cost of retail ...

 

more, including links 

https://www.fool.com/investing/2019/11/07/amazons-new-grocery-store-chain-shouldnt-worry-riv.aspx