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Amazon to open grocery chain separate from Whole Foods

techcrunch.com

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Re: Amazon to open grocery chain separate from Whole Foods

#11

Post by bduerst »

01100011 wrote: post #3

Smart move. Whole Foods has a limited appeal. It's not just price - sometimes people want to buy Cheetos or pizza rolls that don't taste like cardboard. Slightly related thought: Why not design a store which allows instant fulfillment from a wide selection of goods while taking up less ground level space? I could see an Amazon/Walmart/etc store where you reserve the shelf space for presentation, but the goods are act…

Do we really need another grocery store chain though? Whole Foods cornered the high-end grocery market (or created it, if you want to debate).

Introducing yet another generic grocery chain to the already saturated, age-old red ocean market doesn't seem reasonable unless they're trying to create walk-up warehouses for online grocery delivery.

Re: Amazon to open grocery chain separate from Whole Foods

#12

Post by petra »

gamegoblin wrote: post #5
01100011 wrote: post #3

Smart move. Whole Foods has a limited appeal. It's not just price - sometimes people want to buy Cheetos or pizza rolls that don't taste like cardboard. Slightly related thought: Why not design a store which allows instant fulfillment from a wide selection of goods while taking up less ground level space? I could see an Amazon/Walmart/etc store where you reserve the shelf space for presentation, but the goods are act…

Yes, I imagine a store in which you just walk around and scan QR codes on your phone and your bagged groceries are waiting for you when you walk out (all paid for on the app, too, so no checkout).

That's a good plan.

But since the store size is 35000 sq.ft., they'll surely do something beyond that. But what ?

And they're going to build a lot of these stores, fast. They must. Or else, Walmart.

EDIT: Why so much space?

Sometimes you need stuff from the grocery today. Other times you can order online. Sometimes you need both.

This stores will serve both roles.

Re: Amazon to open grocery chain separate from Whole Foods

#13

Post by what_ever »

bduerst wrote: post #9
gamegoblin wrote: post #5

Earlier quoted context omitted.

Yes, I imagine a store in which you just walk around and scan QR codes on your phone and your bagged groceries are waiting for you when you walk out (all paid for on the app, too, so no checkout).

Until people put things in their bag/cart that they didn't scan the code for, and you're not going to RFID tag an entire grocery store inventory that already has razor thin margins. Supposedly Amazon's machine-vision store is solving this though.

I don't think the parent comment means people putting things in the bag. They just walk with phone, scan the items they want to buy which get added to bag automatically by robot/someone else and customer just walks to the counter at the end to pick up their bag.

Re: Amazon to open grocery chain separate from Whole Foods

#14

Post by bduerst »

what_ever wrote: post #13
bduerst wrote: post #9

Earlier quoted context omitted.

Until people put things in their bag/cart that they didn't scan the code for, and you're not going to RFID tag an entire grocery store inventory that already has razor thin margins. Supposedly Amazon's machine-vision store is solving this though.

I don't think the parent comment means people putting things in the bag. They just walk with phone, scan the items they want to buy which get added to bag automatically by robot/someone else and customer just walks to the counter at the end to pick up their bag.

I see, my bad. Still, why even walk around empty aisles full of food pictures then?

It seems like a strange UI for something that could just happen in the app before you even get to the store. Seems like a waste of space too since everything will be itemized and stored in the back on shelves as well.

I understand that user behavior doesn't turn on a dime but Amazon customers are already used to ordering online.

Re: Amazon to open grocery chain separate from Whole Foods

#15

Post by anth_anm »

manav wrote: post #10

I think the average Whole Foods has plenty of wasted space and that they could easily start to carry products that the average consumer has to go to a normal grocery/convenience store to buy (liquor, snacks, candy, soda, beauty etc). I don't think it will diminish from the experience. Plenty of higher end grocery stores do the same, even with a smaller footprint.

Whole Foods already carries all that stuff.

Re: Amazon to open grocery chain separate from Whole Foods

#16

Post by eunoia »

jchallis wrote: post #2

Does your business 1) work in retail and 2) have more than 2% margin? Then Amazon is coming for you.

This is clever.

So I'm curious, how is Amazon able to execute so effectively in so many different spaces? It would seem to me that any company endlessly extending itself into new markets is doomed to lose sight of its core competencies and eventually collapse under it's own weight.

And yet Amazon still grows, and keeps executing. How is this possible? Is the 6 page memo the magic sauce of sprawling corporate empire governance? Am I just not understanding some fundamental tenet of business?

Re: Amazon to open grocery chain separate from Whole Foods

#17

Post by arthurcolle »

anth_anm wrote: post #15
manav wrote: post #10

I think the average Whole Foods has plenty of wasted space and that they could easily start to carry products that the average consumer has to go to a normal grocery/convenience store to buy (liquor, snacks, candy, soda, beauty etc). I don't think it will diminish from the experience. Plenty of higher end grocery stores do the same, even with a smaller footprint.

Whole Foods already carries all that stuff.

Whole Foods doesn't carry liquor in any place I've ever lived.

Re: Amazon to open grocery chain separate from Whole Foods

#18

Post by bduerst »

dontbenebby wrote: post #6
jchallis wrote: post #2

Does your business 1) work in retail and 2) have more than 2% margin? Then Amazon is coming for you.

I'm actually cautiously optomistic for some stores. For example, I still go to Target since I want to see clothes before I buy them. And their store card gives you free 2 day shipping with no BS "membership fee". I could see AMZN taking a huge dive if the economy slows down. Think about it - a lot of people will be looking for things to cut and that Prime membership may be the first to go.

Eh, it's getting much easier to order online, try it on, and ship returns. After getting frustrated with stores not having the size of the item I wanted in stock, I started ordering online from specialty sites and haven't looked back.

The only problem is time though - it can take a couple weeks to do this.

Re: Amazon to open grocery chain separate from Whole Foods

#19

Post by tyingq »

manav wrote: post #10

I think the average Whole Foods has plenty of wasted space and that they could easily start to carry products that the average consumer has to go to a normal grocery/convenience store to buy (liquor, snacks, candy, soda, beauty etc). I don't think it will diminish from the experience. Plenty of higher end grocery stores do the same, even with a smaller footprint.

I would guess the perceived gap is also popular processed foods that would hurt the Whole Foods brand if they carried it.

Re: Amazon to open grocery chain separate from Whole Foods

#20

Post by edaemon »

arthurcolle wrote: post #17
anth_anm wrote: post #15

Earlier quoted context omitted.

Whole Foods already carries all that stuff.

Whole Foods doesn't carry liquor in any place I've ever lived.

That may be due to local laws. In the places I've lived (MN and OR) no grocery stores are allowed to carry liquor.
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