Call Today for a FREE Consultation (206) 201-2125
Reduce Costs. Increase Output! ™
Amazon eating competitors’ lunch again

Amazon eating competitors’ lunch again

Amazon, my employer of many years before I founded Zeitgeist Research, has been well known for being the most innovative online retailer. They introduced such approaches as dash buttons and subscribe-and-save, and recently entered the world of brick-and-mortar retail with its launch of bookstores and, now, grocery/convenience stores. The Seattle-based retailer’s latest development destined to be part of our everyday lives is Amazon Go, a store format that offers prepared meals, salads, sandwiches, bakery items, and snacks. The game changer is that there are no checkout lines and no cashiers; customers simply check in at the entrance with an Amazon app, add items to their shopping baskets, and leave. No line, no register, no cashier, no credit card, no wait time. How? The store is equipped with sensors and computer vision that allows Amazon to track customers as they move through the retail space, automatically registering what they pick up. As the customer walks out, their Amazon account is charged for what’s in the basket. The concept will certainly work well, attacking grocery stores (such as Whole Foods, Kroger, and Safeway) as well as convenience stores (Walgreens, CVS, 7-Eleven, etc.). As we have been given a glimpse into the future of the barrier-free shopping experience,  I don’t think we are far removed from seeing this approach rolled out to all sorts of transaction based retailers.  Most likely the least to be effected by this approach are retail environments with a high degree of consultative sales such as Nordstrom or Apple stores. Brick-and-mortar retailers will need to adopt to innovative technology approaches, otherwise they will join the fate of Circuit...
Reuters quotes Manfred Bluemel, PhD of Zeitgeist Research

Reuters quotes Manfred Bluemel, PhD of Zeitgeist Research

AmazonFresh first launched in 2007 and has been a been greatly talked about with in the business news media. AmazonFresh initially provided home grocery delivery to homes located in the Seattle suburb of Mercer Island through an invitation-only beta test in August 2007. It has since enlarged to a number of Seattle-area ZIP Codes, including the suburbs of Kirkland and Bellevue. On June 10, 2013, AmazonFresh added additional cities by widening it’s reach to portions of the Los Angeles area, offering “free same-day and early morning delivery on orders over $35.” Additionally, the service opened in San Francisco on December 12, 2013. Online grocery shopping could be seen as big of a change as Amazon.com brought to the book publication industry. Many brick and mortar businesses, such as Safeway, are expanding into online sales as they see the industry changing. Here is a link to the article which contains the quote (see below) from Manfred Bluemel, PhD: http://www.reuters.com/article/2013/06/04/net-us-amazon-grocery-idUSBRE95311Q20130604 “If online orders also include higher-margin general merchandise such as digital cameras, then AmazonFresh has a chance at profitability,” said Manfred Bluemel of Zeitgeist Research, who was head of market research worldwide at Amazon until late 2010. “Grocery is a frequency business. If Amazon can deliver to consumers’ homes two or three times a week, they can up-sell other items,” he said. Bluemel said AmazonFresh’s expansion will likely focus on areas where Amazon already offers same-day delivery, or will do so...
Google+