In this file:
· Why Amazon won’t dominate in groceries
· Amazon is opening its own grocery store in 2020
Why Amazon won’t dominate in groceries
Bastiane Huang, VentureBeat
November 26, 2019
Grocery is the largest retail segment in the U.S., but its online penetration remains low: Only 3% of grocery sales happen online, compared to 30.2% for electronics and 27.4% for apparel. The reason? Groceries are particularly hard to handle with the kind of warehouse distribution model that an online retail powerhouse like Amazon relies on.
The company I work for provides machine learning-enabled robotics for picking products in warehouses, so the grocery challenge is a topic I keep a close eye on. And recently, there’s been some interesting experimentation on this front, with British online grocer Ocado trying out a whole new approach to the one Amazon has trialed so far.
When Amazon acquired Whole Foods in 2017, stock prices for Costco, Target, and Kroger tanked. The market expected Amazon to transform the grocery industry just as it transformed book sales, retail, delivery, and many other industries. But today, more than two years after the Whole Foods buy, grocery has yet to be “Amazoned.” In fact, Walmart, the largest grocer in the United States, just reported a 41% surge in online sales driven by its strong grocery segment. Perhaps grocery will indeed be Amazon’s Waterloo as Whole Foods founder John Mackey once suggested?
Amazon is good at providing a large selection of products with fast shipping and low prices. But foods are perishable. Their values degrade over time as they get transported. You cannot stock lots of food for faster delivery or a better economy of scale because it will go bad.
That’s why grocery is fragmented. It’s not the “winner takes all” market — like ecommerce — that Amazon is used to.
The Ocado model ...
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Amazon is opening its own grocery store in 2020
By Ricky Pritchett, Healthcare News Reports
November 27, 2019
Amazon will open another, full-size market in an area of Los Angeles, and it won’t be under the Whole Foods brand – this is the latest report from our newsagents.
Earlier this year, Amazon went for a fish market in and around the California area. Amazon authority disclosed to us that the store won’t utilize the organization’s latest innovation of cashier-less checkout system as is found in the Amazon Go stores. Hence, it appears this basic food item chain will have new Amazon marking and a new approach of Amazon in the retail market.
Reportedly Wall Street magazine in the mid of this year already reported about such approach from Amazon, where they will move out from the so-called tendency of them to remain under the curtain. As per their report, Amazon would soon be found to take up deals on the wholesale and retail market in and around California and Philadelphia. Earlier, the Americans found the giant tech hub to get down to the wholesale market with fish market approach. Now it is moving to the next step, by enrolling itself in the grocery market.
The Woodland Hills store, as has been declared by the authority, will open in 2020, which additionally detailed that the store might be housed in what was before a Toys R Us, in view of Google Maps information. Beside the grocery hub approach...