Amazon Fresh Searching for Answers: Are You There Yet? No

 

From the perspective of Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, Amazon's venture into the grocery space has been a saga of ambitious innovation tempered by real-world challenges. While the tech giant has revolutionized online shopping, its attempts to conquer the grocery sector through Amazon Fresh and the acquisition of Whole Foods have revealed a fundamental truth: you can't be all things to all people within the food space and expect to win.

The Rocky Road of Amazon Fresh

Amazon Fresh, launched as a grocery delivery service in 2007, was Amazon's first significant foray into the food industry. Initially, the service aimed to bring the convenience of Amazon's legendary online shopping experience to the realm of fresh produce and pantry staples. Despite Amazon's prowess in logistics and technology, the service struggled to gain traction. High prices, limited availability, and competition from established grocers left consumers questioning the value proposition.

The company attempted to bridge the gap between its online platform and physical grocery shopping by opening Amazon Fresh stores, the most recent of which debuted in Arlington Heights, a northwest suburb of Chicago. This store marks the tenth Amazon Fresh location in the Chicago area, contributing to a growing portfolio that includes locations in California, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington state. Despite this expansion, the brand's identity remains unclear.

The Whole Foods Conundrum

In 2017, Amazon acquired Whole Foods Market for $13.7 billion, sending shockwaves through the grocery industry. The acquisition was meant to solidify Amazon's presence in physical retail and provide a foundation for expanding its grocery footprint. However, integrating Whole Foods' premium, organic-focused brand with Amazon's more mass-market approach has proven challenging. Consumers have been left wondering: Is Whole Foods still the bastion of organic and high-quality products, or just another cog in Amazon's vast machine?

The inconsistency in brand messaging and customer experience between Whole Foods and Amazon Fresh has not gone unnoticed. While Whole Foods maintains its upscale reputation, Amazon Fresh seems to be struggling to define its niche. The recent shift from the proprietary Just Walk Out technology to Dash Carts—a tech-enabled cart allowing shoppers to scan items and avoid traditional checkouts—illustrates Amazon's ongoing search for the right formula to resonate with customers.

The Technology-Food Gap

Amazon's core strength lies in technology and data analytics, but grocery retail requires a different skill set. The challenge is not just about delivering groceries but creating a cohesive brand experience that makes customers feel valued and understood. The introduction of the Dash Cart in Amazon Fresh stores is a step toward enhancing the in-store experience, but it also highlights the gap between technology and the tactile, sensory nature of food shopping.

This gap is further exemplified by the company's recent experiments with the Whole Foods Market Daily Shop, set to open in New York City. While Amazon CEO Andy Jassy has praised the "V2" (version 2) iteration of Amazon Fresh stores for delivering improved results, the focus remains on refining the concept rather than delivering a clear and consistent brand message. The company's test-and-learn approach, while innovative, has led to a fragmented customer experience.

Can Amazon Find Its Food Footing?

The question remains: Can Amazon truly become a dominant player in the grocery sector, or will it remain an outsider trying to fit in? The answer lies in the company's ability to unify its food retail strategies under a coherent brand identity. Consumers need to understand what Amazon Fresh stands for, whether it's convenience, quality, or affordability.

Amazon's recent store openings and planned expansions signal a renewed commitment to the grocery space. However, until the company can effectively bridge the technology-food divide and deliver a seamless, cohesive shopping experience, it will continue to face skepticism from consumers and industry insiders alike.

Understanding 

Share of Stomach

Is Not just about what you Sell

Think about this, in the world of food retail, being everything to everyone is a recipe for confusion and, ultimately, failure. Amazon must focus on defining its niche, whether through Amazon Fresh, Whole Foods, or another format. The path to success will require not just technological innovation but a deep understanding of what customers want when they buy food—not just online, but in their mouths. As it stands, Amazon is still searching for answers. Are they there yet? No.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

New Kum & Go Partnership Drives Grocerant Fresh Food Focus

Convenience store sector fresh food continues to attract new consumer growing sales at 9.6% a year according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  The convenience store sectors new focus on grocerant niche fresh food continues to garner chain restaurant customers much to the dismay of the restaurant sector.

Kum & Go has entered into a new three-year commitment with PHA that will, result in healthier offerings, including fresh fruits and vegetables, grab-and-go items, beverages and prepared items in its fresh food program garnering new customers, creating new electricity.

Last week Partnership for a Healthier America (PHA) and NACS announced that Kum & Go is committing to offer healthier foods at healthier prices throughout its 400 locations improving consumers fresh food touchpoints according to Johnson.

PHA, is a nonprofit that helps leverage the power of corporate America to improve the food supply, has now helped to expand healthier options in more than 2,500 convenience store locations nationwide.

Nancy Roman, President and CEO of PHA stated “One in two Americans visits a convenience store every day. The convenience store industry has recognized the important role they must play in providing healthy, nutritious options for customers,” … “We are excited to have Kum & Go’s commitment to expand healthier options throughout its 400 stores.”

Kum & Go’s three-year commitment with PHA will result in healthier offerings, including fresh fruits and vegetables, grab-and-go items, beverages and prepared items in its fresh food program. Kum & Go will also be offering special price promotions on healthier items and will include healthier options in its “&Rewards” customer loyalty program.

Kum & Go Chairman and CEO Kyle J. Krause  stated “Kum & Go is proud to announce these new commitments with Partnership for a Healthier America,” …“The partnership’s mission to ensure all families have access to nutritious foods is in lock step with our own goals to help make healthy choices convenient and accessible for all.” How is your brand driving new electricity?

NACS President and CEO Henry Armour stated “The convenience retailing industry is committed to making the healthy choice the convenient choice. Kum & Go’s commitment with PHA furthers the work of the country’s leading convenience retailers and distributors to help make a positive difference in millions of Americans lives every day,”.

Consumers are dynamic not static how is your brand keeping up with consumer demand for fresh fast food? How are you driving new electricity into your brand?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, plant based  foods,  sampling, toy’s, beer, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Grocerant Niche Food Flexibility finds Favor

Foodservice Solutions® Tacoma, WA based Grocerant Guru®, Steven Johnson stated “Time starved yet flavor charged consumers continue seeking meal components from non-traditional retail outlets and in 2019 this will become an industry focal point.”

The grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food niche filled with mix and match meal components continues to be the undercurrent of retail food customer migration. Consumer are seeking food components that are filled with flavor that can be bundled into customized family meals or a personalized meal according to Johnson.

It is no surprise that 82.3% of meals eaten at home for dinner in Q four 2018 include at least one Ready-2-Eat or Heat-N-Eat meal component.  Building a consumer retail food brand today requires a consumer focus, flexibility, and foresight with a grocerant niche twist.

Cultivating a brand is more important that managing a brand. Brands are dynamic not static, they develop and grow with/for your clients and the consumer according to Johnson.  Identifying distinctive differentiated programs, positioning and consumable’s by day part that reflect the brand, industry trends, consumer preferences with an eye on meal component bundling is a key to success.

Creating or identifying distinctive differentiated food consumable’s as an entity with identity by day part in the grocerant niche Ready-2-Eat and Heat-N-Eat is an art well understood by the team at Foodservice Solutions® who have been tracking the growth since 1991.  Understanding the unique balance between palate, price, pleasure and the consumer’s drive for qualitative distinctive differentiated new food consumables requires both IQ and EQ. 

The food value proposition equilibrium for the consumer today balances; better for you, flavor, and traditional products all blended into something with a twist.  In industry speak, differentiated does not mean different to the consumer it means familiar. Are you growing top line sales and bottom line profits? Have you considered offering more grocerant niche options?

Invite Foodservice Solutions® to complete a grocerant program assessment, brand, product placement or positioning assistance.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson 

Why a Wendy’s - Papa John’s Merger Makes Sense

Increasingly in 2018, consumers are finding that the family dinner is a grocerant meal, with 82.7% of family dinners including at least one grocerant niche fresh prepared item. In fact, Americans consume a shocking 350 slices of pizza every second, according to a report from CNBC -- and if that fact does not get you, consider this: 61% of consumers eat a sandwich at least once a week! 

Now, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, Papa John’s has the technology to empower delivery that Wendy’s needs.  Wendy’s has burgers - another hand-held food that fits perfectly with consumers’ increasing on-the-go sandwich trends. Then there is the fact that Wendy’s does not sell breakfast system-wide, thus offering a huge opportunity for incremental growth for a combined company.

This new combination could create a platform that encompasses dinner sales, lunch sales, and breakfast sales, given the built-in customer bases and technology platform, according to Johnson.  After all, regular readers of this blog know that since 1991 Steven Johnson has been crafting new non-traditional business relationships edifying legacy brands, while building foundations for start-up and regional chains.

Does your brand need a refresh? If your brand looks more like yesterday than today or tomorrow, it just might be time that you called for outside eyes to help you drive inside results.  What is your new electricity that is driving top line sales and bottom line profits?  Are your customer counts growing? 

So, just what do we mean by a brand’s new electricity? According to Johnson, “Brand relevance is in part driven by innovation in new food products in combination with new avenues of distribution, all of which are the platform for the new electricity.”

Johnson states that “in my mind’s-eye, the new electricity must be very efficient for the supply and includes such things as fresh foods, urban clothing, grocerant consultants, urban farming (produce, seafood, etc.), autonomous delivery, cashier-less retail, cash-less payments, and digital hand-held marketing. This program has all of that.

For foodservice retailers to survive the next generation of retail, they must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar, not different.  That will require brands to embrace new fresh food partnerships now more than ever before, according to Johnson.

For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaker will leave success clues for all. Visit: www.FoodserviceSolutions.us for more information.

Bingo Box Copycats Driving Cashier Free Adoption

Back in the day the U.S. was filled with cutting edge venture capitalists who would drive innovation in retail foodservice and the world watch, copied and U.S. branded innovative foodservice grew.  Today foodservice innovation and venture capital is center stage in China and Asia according to Tacoma, WA based Foodservice Solutions® Grocerant Guru®, Steven Johnson. 

Consumers in China are just as time starved as anywhere else in the world and retailers looking to reduce consumer time in the stores think going ‘cashier-free is the way to go.  The question is this the next big thing or are retailers and venture capitalist throwing money at China’s cashier-free convenience stores?

First does the technology in a cashier free store work?  Will the retailer actually make money, or learn once again that retail, even tech-driven retail, is a brutal business of low margins, low barriers to entry and high fixed costs? Our Grocerant Guru® asks how much would your margins improve without cashiers? 

This year alone in China there are eight start-ups in the space have raised a total US$385 million. The investment premise seems simple: tap into an ongoing retail revolution in a nation with 1.3 billion potential shoppers with a track record of embracing new retail experiences.

The fact is China’s cashier-free stores are very different from Amazon Go, the fully automated checkout-free stores launched by Amazon, something all of the Chinese start-ups tried to copy but found it too difficult. Amazon Go has delayed it’s rollout due to ongoing technology and operational glitches according to Amazon.  

Most of China’s cashier-free stores fall into two types. The first looks like traditional convenience stores with row of products displayed like in a 7-Eleven, or with product images displayed on a computer screen. Shoppers scan a QR code or their faces to enter the store. They then scan the products they want and check out via mobile payment. In other cases, they are clicking pictures of products and pay via mobile payment.

The products are then dispensed like from a vending machine. Bingobox, Bianlifeng and Xiaomai belong to this category, with most placing box-like stores “in the wild”, such as in parks or on the sidewalk.

The other type are essentially a vending machine, or shelves, placed in office buildings and powered by mobile payment and QR codes. The only difference between this type and a traditional vending machine is the addition of mobile payment enabled by easy scan of QR codes. Guoxiaomei and Citybox are examples of this type.

Here is the point international retailers are expanding into new points of fresh food distribution, that may very well save them lots of money while driving top line sales and bottom line profits?  So we ask does your company look more like yesterday than tomorrow? Will you brand be replaced by a new start-up from Europe, Asia, or the U.S.? 

Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us