Thursday, March 26, 2020

Grocery Sector Plateaus: Amazon Go’s Competition Ratchets-Up Development


Consumers are dynamic not static. Retail discontinuity drives competition.  Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® reports that their most recent Grocerant SocreCards indicate that grocery store sales may have plateaued.
While more and more restaurants are closing down, consumers have over stocked on shelf stable grocery items and Johnson believes that grocery store sales have plateaued. Yes, there are still some store shelves that are empty of items the ilk of Hand Sanitizer, Clorox Wipes, and Toilet Paper but they can be found at select drug stores, convenience stores, and online. 
Consumers are now migrating from channel to channel no longer looking to ‘stock-up’, but rather to fill a gap/spot on the shelf at home. Grocery store basket size will return to normal within three months while some consumers adopt new social-distancing practices migrating to contactless food shopping platforms for incremental safety the ilk of QuickEats and Amazon Go Grocery according to Johnson.
 At the intersection of retail discontinuity and opportunity; innovation always prevails, according to Johnson. The QuickEats concept is using AWM Frictionless technology for “an unmanned, self-service grocery microstore”. 
QuickEats is empowering consumers choice for fresh food fast placing personal safety as a top-of-mind attribute. Johnson contends that cashierless shopping become a choice for many wanting to continue to practice some social-distancing even after the coronavirus outbreak subsides. concerns demanding more contactless food shopping options.
So, QuickEats, uses proprietary computer vision technologies and artificial intelligence to track movement of shoppers and goods in the store, allowing shoppers to walk in, take what they want from shelves, walk out and pay using an app in the style of stores such as Amazon Go. Now there is direct competition within the cashierless space growth and adoption will follow. 
AWM CEO Kevin Howard said in a statement, “When we planned the launch of QuickEats many months ago, we never could have imagined the circumstances our community now faces as Orange County practices social distancing due to coronavirus,”  “We made the decision to open our doors because QuickEats can provide vital food, drink and personal care items to Nineteen01’s residents in a completely frictionless environment that adheres to the current protocols being requested by [the county’s] health officer.”
AWM said its solution can be implemented in a wide range of store sizes and formats, from micromarkets to convenience stores to larger-format retailers. Is your business model evolving?  Does your retail format look more like yesterday than tomorrow?  Have your sales plateaued? Are you tired of losing market share to Amazon? 
Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

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