Are there any opportunities here for the major grocery retail chains or the major food distributors
View the illustrative cartoon regarding the Amazon Supermarket
Recently, Amazon announced that it would become heavily engaged in food sales (aka “Supermarket”). This story is covered in detail on all the major networks.
Post a clear and logical response io the following, providing specific examples to support your answers.
Research further into this topic and consider the strategic implications of this monumental announcement. What will be the impact on companies like Giant, Acme, Aldi, Red Lion, etc.?
Do you anticipate small Mom-and-Pop grocery stores to be adversely impacted?
Are there any opportunities here for the major grocery retail chains or the major food distributors?
Could this situation also have any potential international implications? Explain
Respond to 2 other students posts that I send you in a manner that is thought provoking and appropriately challenges or elevates the discussion.
I will send posts from other students
First student’s post
Amazon has launched a new store in Seattle called Amazon Go Grocery. Essentially with a smart phone and the Amazon go app you can pick up your items and leave without ever having to go through a traditional checkout process. This coupled with Amazon Go, a type of convenience store in business districts and their already established footprint in Whole Foods Markets, Amazon is quickly making headway in the grocery business. As a Prime member I have used Amazon to order some difficult to find food items but have never used them via Whole Foods to deliver regular groceries. I see the appeal, but I would not use it. I prefer to pick items like produce, meat myself.
Amazon Go Grocery is certainly more appealing since it could cut a shopping trip in half the time. I can see even greater appeal during the current pandemic. I can see the concept expanding and rivaling traditional supermarket like Acme and Aldi. Amazon would be able to offer similar products at lower prices due lower labor costs at half the shopping time of regular supermarkets. I think mom and pop stores would be safe. Most people do not use their local small grocer for a full shopping trip. They are usually for the items you forgot, specific products only they carry, or quick trip on the way home from work. The serve a specific role that would continue regardless.
I do not believe there would be international implications with this venture; however, there is a potential loss of jobs in the grocery sector if this would catch on. Traditional supermarkets would have to offer additional services or something different to compete
Second student’s post
The Amazon Supermarket has added another level of convenience for its customers by offering fresh groceries and everyday essentials.My wife and I are Prime members and take advantage of ordering household items and paper products to have delivered on our doorstep.Overall, I do not think this will impact other grocery store chains such as Giant and Aldi.These grocery stores have similar services where they offer delivery and pick-up options.For instance, dring the pandemic we have been using the Peapod delivery service with Giant to get our groceries.Mom and Pop shops that offer unique, locally sourced products would still have customers frequent their store for those niche products and hopefully would be unaffected by the Amazon service.The Amazon Supermarket could potentially create an opportunity with other grocers to create a partnership with them similar to Whole Foods.It could allow other online retailers to move into the grocery industry using Amazon’s blueprint.Internationally, this could be a grocery brand that is offered in numerous countries, as opposed to the large grocery stores that we are used to which are more regionally based within individual countries.
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