The development of Whole Foods under Amazon has already been fascinating to watch. The company has slashed prices of key items and is accelerating a price war in the grocery business. However, for a vision of what is to come, look no further than Amazon’s own new book stores. Based on Amazon’s new stores, it seems like that in the future customers will find prices for items by scanning them with their phones. Prices would fluctuate depending on if you are a Prime member or have other coupons etc. The tactic allows Amazon to use its pricing algorithms in-store, give customers access to reviews, and track the movement and browsing habits of shoppers.
FINSUM: While we think this is a brilliant tactic for Amazon, we believe it would be a risky bet in a grocery store. Shoppers probably go to supermarkets 20 times for every visit to a bookstore, so the inconvenience of having to scan every item to see a price might hurt the shopping experience.