In this file:
· Grocery Delivery Wars: Amazon And Walmart Face Off
· Amazon plans first fulfillment center in Iowa
· Bezos’s Sales of Amazon Stock Reach $3.45 Billion in a Week
Grocery Delivery Wars: Amazon And Walmart Face Off
Sarah Cavill, Digital Media Solutions
February 6, 2020
For every parent who has dragged a screaming toddler through a grocery store and every tired commuter who forgot to pick up dinner, the rise of seamless grocery delivery has been a gift from the internet gods. And grocery delivery shows no signs of letting up, with more and more brands either offering their own delivery services, or partnering with delivery platforms and online grocery sales predicted to reach $100 billion by 2022.
According to recent news out of Amazon, the mega-retailer more than doubled their AmazonFresh delivery orders year over year in the fourth quarter. However, Walmart launched Delivery Unlimited in the fall, and an increasing number of brands are also offering digital grocery shopping options. The grocery wars are heating up.
Amazon’s Grocery Options Resonate With Certain Audiences
Amazon’s dominance across retail sectors is evident, but their rise as a grocery delivery service has been more circuitous. The retailer offers two different grocery options: Prime Now and AmazonFresh. The biggest difference used to be Amazon Fresh charging a monthly fee, but, after Amazon dropped the fee in late 2019, both services are now free for Prime members.
The differences remaining between the two Amazon grocery delivery services involve what stores Amazon uses to fulfill fresh grocery orders (Prime Now offers Whole Foods), delivery times and add-ons, but insiders speculate that the two services may merge soon since they are so similar and can be confusing to shoppers. Amazon’s grocery services, particularly Prime, generally attract shoppers with higher-incomes than average Americans. Amazon dropping the AmazonFresh monthly fee, particularly since it happened at the same time Walmart announced the expansion of its grocery service, could indicate that Amazon is trying to expand audiences.
As Grocery Memberships Increase In Popularity; Walmart Introduces Delivery Unlimited
Touted by Walmart leadership as the next step in Walmart’s “online grocery journey,” Delivery Unlimited is an annual or monthly subscription which delivers to 200 markets across America. “By pairing our size and scale and these [grocery] services we're making Walmart the easiest place to shop. Combine that with the value we can provide, our customers can't lose,” said Tom Ward, Senior VP of Digital Operations at Walmart.
Expansion of Delivery Unlimited has gone very quickly since the four-market pilot program in June, indicating customer enrollment was probably high. Even prior to the launch of Delivery Unlimited, Walmart led all grocery delivery services in online grocery sales, courtesy of their robust online delivery fulfillment and the sheer number of stores the retailer has across the U.S. offering pickup service.
Memberships for grocery delivery services are on the rise, as consumers continue to adopt the subscription-based lifestyle, particularly when they are frictionless and offer trustable, turn-key experiences. Grocery Dive explains, “Delivery plans and memberships may soon become the status quo in grocery delivery. In addition to Prime, Delivery Unlimited and Albertsons' yet-to-be-named plan, memberships for unlimited grocery delivery have been a foundation for online grocers Instacart and Shipt. While some shoppers may initially balk at paying the price, these memberships can solidify shopper loyalty, encourage repeat purchases and drive bigger baskets.”
Instacart Adds A Pickup Option To Increase Convenience For Shoppers And Revenue For Retailers ...
Target Makes Same-Day Grocery Delivery Even Easier Through Shipt ...
The Grocery Wars May See Audiences Divided On Which Service Is “The Best” ...
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Amazon plans first fulfillment center in Iowa
By Dan Berthiaume, Chain Store Age
Amazon will open a facility in the city of Bondurant, Iowa, in late 2020.
The e-tail titan intends on employing 1,000 full-time workers at the 645,000-sq.-ft. fulfillment center. Employees will work alongside Amazon robotics to pick, pack and ship small items to customers, such as books, electronics and toys.
“We are delighted to be opening our first Iowa fulfillment center in the city of Bondurant and look forward to creating 1,000 new, full-time jobs with Amazon’s $15 minimum wage and industry-leading benefits,” said Alicia Boler Davis, Amazon’s VP of global customer fulfillment. “The site will help us continue to serve customers with great delivery options and we appreciate the strong support from local and state leaders.”
"We are excited that Amazon is establishing a highly advanced robotic sortation center in Bondurant,” said Jay Byers, CEO of the Greater Des Moines Partnership. “Amazon's project in Iowa further demonstrates the region is a logistics and technology hub and adds to the presence of other major tech companies with operations here," "This project shows that Iowa continues to be recognized nationally as a top place for businesses to relocate or expand."
Amazon has also pledged to invest...
Bezos’s Sales of Amazon Stock Reach $3.45 Billion in a Week
Tom Metcalf & Sophie Alexander, Bloomberg
via Yahoo Finance - February 6, 2020
(Bloomberg) -- Jeff Bezos is on a selling spree.
Stock disposals by Amazon.com Inc.’s founder and chief executive officer over the past week have reached 1.7 million shares, or $3.45 billion, according to the latest round of regulatory filings. The stock has ticked higher regardless, gaining 9.6% since Jan. 30, the day before his sales began. The transactions are part of a pre-arranged trading plan.
An Amazon spokesman declined to comment.
That brings Bezos’s total stock sales to more than $13 billion, with the majority occurring in the past four years, according to calculations by Bloomberg. Bezos, 56, said in 2017 that he was selling about $1 billion a year in Amazon stock to fund Blue Origin LLC, his space flight company. The rocket builder has since expanded operations and signaled its first human test flights this year.
Bezos also has been on a shopping spree for...