Saturday, August 8, 2015

Sorry Kroger, Publix and Safeway Amazon's Technology Will Change Grocery Shopping

Foodservice Solutions® Grocerant Guru™ stated “All indications are that Amazon's new grocery pickup service in Sunnyvale, CA will  be more efficient, more automated and more profitable than any grocery store or service available today. Let’s face it Amazon changed how the world bought books, why would they not attempt to change how the world shops for groceries?”

The proposed new service in Sunnyvale will serve as a pick-up point for online grocery orders assembled automatically by Amazon robots at a remote location, delivered to Sunnyvale or other pick-up locations.  Then Amazon Prime or maybe any Amazon customer can simply drive-thru any of the multiple lanes, pop open the trunk and someone will place your order in the trunk and off you go.

Amazon has confirmed, this new "click & collect" project could signal a new distribution strategy for it and the food retail industry.  Today Amazon, is the world’s biggest online retailer, and recently added its own private label food product line for its online grocery customers.  

Price, Portability, Fast, Favorites 

Amazon excels at price competitiveness. When you add the ease of conveniences and time savings with price competitiveness Foodservice Solutions® Grocerant Guru™ believes “that many legacy grocery retailers will struggle with relevance after all how many retailers can survive a loss of 3%, 5%, or 7% of sales? 

The operational efficiencies alone driven by the automation and robot product selection might be enough to garner a price advantage for Amazon that legacy retailers may not be able to ever recover from. While Wal-Mart began testing a similar concept, Walmart Pickup - Grocery, a same-day pickup concept, in September 2014 at a gas station-like site in Bentonville, Ark. Amazon is simply five steps (light years) ahead of that program according to our team.

Has Amazon Found a Last Mile Solution or Simply the Next Step?

Simply put we believe that Amazon continue trial of fresh food sales is Bold, Brave, Branded and is simply another step closer to the last mile solution. Amazon’s click & Collect is  empowering customer choice it lets consumers decided where, when and how they want to receive products. 

While legacy of food industry leaders the ilk ow Wal-Mart, Safeway, Publix and Kroger talk fresh and talk innovation they have been for the most part followers of late in the retail food delivery and fresh food grocerant niche unlike Amazon. 

Mobile and online ordering has gained broad acceptance in food retail  from restaurant orders , restaurant reservations, mobile phone coupons or promotions, mobile payments we believe that home delivery of grocery staples, drive-thru pick-up of groceries, and grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food that is ‘better for you’ are all going to find a growing and increased rate of customer adoption.  

Success does leave clues outside eyes can deliver inside sales. Grocerant SWOT analysis are available from Foodservice Solutions®.  What are you bundling with you core products? Where and how can you sell your customers more? Do you need a Grocerant Scorecard? For more Visit  or or  

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