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Want to See What’s Up Amazon’s Sleeve? Take a Tour of Seattle
Sept. 23, 2018 | The New York Times | By Karen Weise.

Amazon uses Seattle as a living laboratory, trying out new retail and logistics models.

Some trials never leave the city. But others, like the use of independent contractors to deliver packages, have found their ways to the rest of the country and abroad. The pilots point to a company, with ambitions that at times can seem boundless, investing deeply in figuring out its physical footprint and how to provide convenience at a lower cost.....In 2015 when Amazon first tested the Treasure Truck, a decorated vehicle that drives around and sells a daily deal like smart watches or plant-based burger patties, it delayed the public debut at least twice before finally going live. .....
Amazon  Amazon_Books  AmazonFresh  Amazon_Go  bookstores  business_models  cashierless  experimentation  new_businesses  Seattle  pilot_programs  product_returns  delivery_services 
september 2018 by jerryking
Amazon’s Ripple Effect on Grocery Industry: Rivals Stock Up on Start-Ups
Aug. 21, 2018 | The New York Times | By Erin Griffith.

When Amazon bought Whole Foods Market. The $13.4 billion deal shook the grocery world, setting off a frenzy of deals and partnerships that continues to intensify. Traditional retailers pursued digital technology, and online companies reconsidered their relationship with brick-and-mortar retail......“Are technology folks like us going to figure out retail faster than the retailers figure out technology?” [the Great Game] ..... “In some ways we’re all kind of fighting the same fight against the gigantic folks online.”

Food shopping is one of the last major holdouts to online retail. Groceries are unique in that their inventory is perishable, fragile and heavy. Grocery customers often shop at the last minute, like to see the food they are about to eat and don’t want to pay high delivery fees.

Even Amazon, with its Amazon Fresh online grocery service, has struggled to gain ground in the business. The company’s Whole Foods deal, paired with Walmart’s 2016 acquisition of Jet.com, underscored that the future of selling food and household items requires cooperation between the digital natives and the old-school retailers.....Grocery companies “are realizing that with Walmart and Amazon moving at their pace, you need to pick yours up, too,” .... “I wouldn’t call it fear. I would call it a wake-up call.”....... Market research conducted by Morgan Stanley in July found that 56 % of consumers who were likely to order groceries online said they would most likely order from Amazon, compared with 14 % who would go to a mass merchandiser and 10 % who would use their local supermarket. Phil Lempert, a grocery industry analyst, predicted store closings for chains that do not evolve to meet the changing needs of customers. Stores offering curated selections, specialty items, cooking classes and the option to buy online and pick up in person will thrive,......Josh Hix, chief executive of Plated, a meal kit start-up, said the Amazon-Whole Foods deal had immediately changed his discussions with grocery chains. Meal kit companies have a checkered record. But the grocery companies saw an opportunity to use Plated’s data and research on recipes and taste preferences......Most of the big grocers “have wanted to kill us, partner with us, invest in us or buy us — all probably in the course of the same conversation,”......The ownership structure allows Boxed to license its technology to its retail competitors in the United States as they try to become more digital. The company is in talks with 10 or so potential partners for various pieces of its technology. They include mobile app technology, personalization software, a packing algorithm that maximizes space in shipping boxes, software that tracks item expiration dates, order management software and warehouse robotics automation........Grocery delivery is difficult to do affordably, but tech-driven efficiencies like those developed by Boxed, Amazon and others have forced change on the industry.

“Consumers want convenience and will pay more for it,
Amazon  AmazonFresh  bricks-and-mortar  e-commerce  e-grocery  fulfillment  grocery  home-delivery  last_minute  partnerships  retailers  ripple_effects  supermarkets  same-day  start_ups  the_Great_Game  Whole_Foods 
august 2018 by jerryking
Amazon Plans to Launch Prime Now Service in Canada This Year - WSJ
By David George-Cosh
Updated Aug. 31, 2017
Amazon.com Inc. AMZN 1.34% is working on plans to roll out its one- and two-hour membership delivery service into Canada later this year, a move that marks a broader push into the country by the Seattle-based retailer, according to people familiar with the matter.

Amazon could begin offering its Prime Now service in Vancouver and Toronto in November and January, respectively, under a pilot program that will deliver groceries and other items within a two-hour window, ......Grocery spending in Canada is approximately worth C$103 billion, but just 1.9% of that is spent online, according to Nielsen Co. Online grocery shopping is expected to grow to 5.3% of total spending by 2020, accounting for C$6 billion in sales, Nielsen said.

Any further entry by Amazon into the Canadian grocery-delivery space is expected to weigh on companies such as Loblaw Cos. Ltd. and Empire Co. Ltd. as well as the domestic arms of stores such as Wal-Mart Stores Inc. and Costco Wholesale Corp. , which all have explored shipping online grocery orders to Canadian doorsteps.......Amazon’s Fresh grocery delivery service, which costs U.S. customers $14.99 on top of annual Prime membership, is not yet available in Canada......it’s unlikely that Amazon will be able to create a comparable temperature-reliant supply chain in Canada for some time. “Amazon is not able to match the Canadian grocers in terms of procurement scale,”
Amazon  Canada  AmazonFresh  Amazon_Prime  pilot_programs  memberships  subscriptions  retailers  cold_storage  same-day 
september 2017 by jerryking
Big Prize in Amazon-Whole Foods Deal: Data - WSJ
By Laura Stevens and Heather Haddon
June 20, 2017

The deal for Whole Foods Market Inc., which people familiar with the matter said came together quickly, presents Amazon with several potential gains. It could use the stores as distribution hubs to build out its online grocery-delivery business. Amazon also could stock gadgets such as its Kindle e-readers and Echo speakers, as well as goods from its burgeoning private label.

The bigger opportunity, though, is data.

Amazon for years has been looking for more ways to gather information about how consumers shop. It has long been rumored to be on the prowl for a breakthrough deal, even as it set up its own much smaller Amazon Go and AmazonFresh Pickup stores as experiments.

If the deal goes through, the combination likely will be powerful. Amazon and Whole Foods can join their online and in-store knowledge to better predict what goods to carry in each store, said James Thomson, a former senior manager in business development at Amazon and now partner at the brand consultancy Buy Box Experts.....One enticing aspect of a deal between Amazon and Whole Foods is the significant overlap, analysts say, between the companies’ traditionally loyal customer bases.

A Morgan Stanley survey shows about 62% of Whole Foods shoppers are members of Amazon’s Prime service, opening the door for cross-sell promotions to entice customers who shop at both to spend more.

Amazon, though, doesn’t know how those customers shop in stores—a gaping hole in data about its more than 300 million shoppers.....Amazon has had a more difficult experiment with Amazon Go, its convenience-style store in which customers scan their phones as they walk in, pick up items to purchase and exit without a traditional checkout. The public opening has been delayed, in part because of technological hurdles and Amazon’s limited experience in managing the flow of customers and products in a physical space....

.......The data Amazon collects will likely help it decide which of its growing roster of private-label brands to expand and which new ones to launch, especially when it comes to consumables and food. Whole Foods already has a large private-label business...Bringing together online and offline data can help Amazon learn how to entice customers to make more impulse purchases online, according to analysts and retail consultants.
data  omnichannel  Amazon  Whole_Foods  physical_space  private_labels  impulse_purchasing  Amazon_Go  AmazonFresh  experimentation  cashierless  Amazon_Prime  cross-selling  in-store 
june 2017 by jerryking
Amazon to Buy Whole Foods for $13.7 Billion - WSJ
By Austen Hufford
Updated June 16, 2017

While grocery accounts for a large component of consumer sales overall, online retailers have largely been unable to fully crack the code. They face hurdles like consumers wanting to pick their own produce and the need to deliver fresh and frozen food to people’s homes.

Adding a network of grocery stores could help Amazon tackle those issues. Whole Foods has roughly 450 locations spread out across 42 states. The move could allow Amazon to reach customers closer to their homes and even sell more than just groceries. Amazon’s bookstores also sell its electronic products like book readers, tablets and media streaming devices.
Whole_Foods  Amazon  grocery  supermarkets  fresh_produce  AmazonFresh 
june 2017 by jerryking
Amazon’s Living Lab: Reimagining Retail on Seattle Streets
FEB. 12, 2017 | The New York Times | By NICK WINFIELD.

While Amazon has never articulated the grand strategy behind its expansion into physical stores, analysts and tech executives believe its goal is to capture a bigger share of some forms of shopping — food being the biggest — that may never move entirely online....the most obvious reason the company tries out new ideas in its own backyard is that it makes life easier for corporate leadership to see them in action without having to get on planes. Executives closely scrutinize how customers use new stores and tweak them as they gather data....Amazon Go customers enter the store through a gate with a smartphone app and simply walk out with their goods when they’re done.....Seattle has long been receptive to new ideas in retail. REI, Costco Wholesale and Nordstrom are among the store chains that got their start here.....One of Amazon’s more puzzling retail experiments in Seattle is the Treasure Truck, a roaming delivery truck retrofitted with carnival-style lights and signs, from which customers can pick up items offered during flash sales through the Amazon mobile app. The truck, which seems like the offspring of a billboard and an ice cream truck, has sold wild mahi-mahi steaks, paddle boards and Nintendo game consoles.
Seattle  Amazon  retailers  reimagining  convenience_stores  flash_sales  AmazonFresh  BOPIS  pop-ups  Starbucks  Amazon_Go  bricks-and-mortar  bookstores  experimentation  e-commerce  cashierless 
february 2017 by jerryking
Amazon Working on Several Grocery-Store Formats, Could Open More Than 2,000 Locations - WSJ
By LAURA STEVENS and KHADEEJA SAFDAR
Updated Dec. 5, 2016

Amazon.com Inc. unveiled Monday its first small-format grocery store, Amazon Go, one of at least three brick-and-mortar formats the online retail giant is exploring as it makes a play for an area of shopping that remains stubbornly in-store....The Amazon Go store, at roughly 1,800 square feet in downtown Seattle, resembles a convenience store-format in a video Amazon released Monday. It features artificial intelligence-powered technology that eliminates checkouts, cash registers and lines. Instead, customers scan their phone on a kiosk as they walk in, and Amazon automatically determines what items customers take from the shelves. After leaving the store, Amazon charges their account for the items and sends a receipt....While Amazon is moving into brick-and-mortar grocery shopping, other large retailers are expanding their online services. Wal-Mart’s curbside pickup service offers some convenience without the cost of home delivery.
Amazon  Amazon_Go  grocery  supermarkets  analog  home-delivery  e-commerce  small_spaces  store_footprints  bricks-and-mortar  artificial_intelligence  AmazonFresh  convenience_stores  cashierless  in-store 
december 2016 by jerryking
Loblaw plans to battle Amazon and Wal-Mart with online food operation - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
TORONTO — The Globe and Mail
Published Thursday, May. 01 2014,

Food e-commerce is one of the last frontiers of online retailing in Canada – a tough sector to penetrate because of the added costs of keeping food fresh and handling a lot of low-cost bulky items, from canned pop to soup.
Loblaws  e-commerce  Marina_Strauss  AmazonFresh  fresh_produce  retailers  Wal-Mart  Amazon  contra-Amazon 
may 2014 by jerryking
The Race for Faster Delivery of Everything - Corporate Intelligence - WSJ
December 11, 2013, 7:34 PM

The Race for Faster Delivery of Everything

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Tom Gara
delivery  time-based  Amazon  AmazonFresh  supply_chains  UPS  EBay  EBay_Now  shippers  perishables  logistics  delivery_times  speed  fulfillment  same-day  delivery_services  fast-paced 
december 2013 by jerryking

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