Amazon is buying Whole Foods, indicating a significant push into the grocery sector and the high-end experiential store experience. Grocers across North America, regardless of business model, will definitely see some impact from Amazon’s Prime customers. Let’s face it, Prime is well, prime. One click checkout, fantastic mobile app and free 2-day delivery. Pile on Dash, Alexa and the in-store customer experience Whole Foods has established you’ve got a formula for fierce competition for share of wallet from both the commodity, low-cost grocery consumer and the high-end experiential foodie.
Amazon is a technology company, and has been very transparent in their business model which is focused on aggressively targeting the margin of traditional retailer. Amazon is not an innovator; their concept store in Seattle isn’t new. Self checkout has been around since 1978 and we’ve had self-sensors since the 1980s. What they are is a master at assembling process changes.
That said, consumers are rapidly warming to innovative technology in the shopping experience, and that’s not limited to soft goods. In the spring we published the research report, Retail 2025, which examines consumer sentiment toward concepts like artificial intelligence and wearable technology.
Consumers are getting increasingly comfortable with giving up personal information, even going so far as tying their wearable tech data to their grocer or pharmacy for a better, more convenient and personalized experience. For example:
Oracle’s retail planning and supply chain solutions can help retailers compete with Amazon by optimizing price, executing profitable Omnichannel shopper journeys and getting 100 percent inventory usage. Regardless of whether your grocery strategy is low-cost, no frills or high-end experiential you need to optimize margins and drive store traffic with targeted, relevant assortments which simply cannot be achieved, profitably, without advanced retail science.
Aggregating and analyzing performance data, market data, and vendor data and using it seamlessly within a best practice workflow to drive intelligent and localized assortments will save you time, money, deliver a better experience for your customers and ultimately help you keep pace with the competition.