Displaying items by tag: groceries

(Seattle)

Amazon may get all the fan fare, but Walmart is lurking. For many years, Amazon was considered so far ahead of rivals in ecommerce, that anyone catching up with it was considered unlikely. And while Amazon is still the undisputed leader, that view is changing. Walmart’s most recent earnings show that its commitment to ecommerce is thriving. Walmart is leveraging its food business particularly well in transforming its operation. The company is already operating click-and-collect food businesses in 600 US locations. Amazon only has such operations in 22 cities, via Whole Foods.

FINSUM: Both companies seem to want to be the “everything” of 21st century retail, but they are going about it from different angles. Amazon is going from ecommerce into groceries, and Walmart is doing the opposite.

(New York)

There have been a lot of fears over the supermarket sector over the last couple years. Especially since Amazon’s acquisition of Whole Foods last year, investors have been shy about grocery stocks and how that model may be disrupted. This has led to some steep discounts, but perhaps none is more attractive than Kroger. Despite fears, the grocer seems to have a solid position in the market, especially given that supermarkets are still consumers’ favorite channel. One market analyst says that “People are overly concerned about Amazon and groceries … The industry has faced disruption for 25 years, with companies like Costco Wholesale (COST) and Trader Joe’s, and it has been positive for Kroger. Disruption stirs things up and creates opportunities”. Kroger is currently the number two grocer in the US.

FINSUM: One of the very interesting things to note is that Amazon is now scaling back its grocery delivery business as consumers have not liked it as much as the click and collect services of Walmart and Kroger. Has grocery delivery died before it really began? Good news for traditional grocers.

(Seattle)

The Whole Foods acquisition by Amazon has been somewhat of a mystery for markets. While the move sparked a great deal of fear and excitement, it is still not readily clear what Amazon will do with its new asset. That said, prices at Whole Foods are falling, and the company’s in house basic brand, 365, is pushing forward. Whole Foods 365 is the company’s new low price chain of stores. Many thought it would be shuttered under Amazon’s leadership, but it is moving ahead. The first store just opened in Brooklyn and will expand to five more locations this year.

FINSUM: We think a Whole Foods sub brand of lower priced items with the same general theme could work very well in attracting more Millennial shoppers.