Amazon and your groceries -- would you choose Amazon, Kroger, Costco, or other?
The Amazon-Whole Foods deal came together relatively quickly, according to people familiar with the matter, indicating Amazon may not yet have a fully formed strategy for Whole Foods.
Something as simple as groceries has become something so complex... I certainly wouldn't have imagined the day would come. Admittedly I've never ever tried buying groceries online before and will not really try it (I prefer going to a store), but I know this is definitely a reasonable appeal to others. From initial reactions, it seems like everyone is getting a little wary that Amazon will, again, be a major threat to everyone and their mother's businesses.
That said, now that Amazon has joined the fray in online groceries, where would you buy your groceries from and why?
What kind of business model do you think Amazon will try to play with in order to compete? (More Prime incentivisation or something new?) -- Important question that I think we should keep in mind due to the supply chain and logistics differences between books and gadgets and organic matter. Perhaps this new line of business will not perform as well as thought and eat more into Amazon than originally anticipated.
...And, do you think Amazon is trying to take over the world?
I'm less interested in those companies than I am in Aldi and Lidl. Aldi has an established international presence and their main U.S. brand (Trader Joe's) is the only real comp to Whole Foods as far as I am concerned. Lidl is beginning sales in the US just this week. Look at what Aldi and Lidl did to the UK, they may lack American infrastructure and distribution but that is exactly why they are interesting. I don't think they will upend large brands like Walmart but there are many regional chains they could snap up in the coming years. Unlikely we see an unmitigated failure like Target in Canada taking place here in the US all things considered. Whether you believe that or not, do your DD now.
I'll never buy groceries online, you're gonna order a head of lettuce and just hope it looks fresh or doesn't have any weird shit going on with it when it shows up at your door? I don't mind going to the store and getting it done as long as you go at the right time when it isn't crowded.
As far as Amazon goes, they will have to put every competitor out of business so that they can raise prices. Amazon doesn't make any money because its prices are too low but they keep taking share because its prices are too low. Eventually one of those dynamics will change. I don't think that it has been making the best moves strategically as of late, getting into low margin businesses like grocery, opening physical book stores, adding more debt, they were able to scale and grow so fast because they didn't do those things.
I'm actually pretty surprised there isn't more talk of anti-trust with Amazon now that its getting into higher profile acquisitions. Especially when something like Staples and Office Depot gets shot down.
I briefly used grocery delivery services during my first and only Midwestern winter. The closest actual grocery store was about a mile away and I didn’t have a car and Uber wasn’t around yet, so having groceries delivered was clearly the better option than lugging around a backpack full of groceries on my bike in -10 degree weather.
I actually found online shopping saved money, as you would never be tempted to buy the promotional items that are placed at the end of the aisles or on the checkout counter. Being forced to wait on delivery made you more thoughtful about what you buy, and you never forget that you already have milk in the fridge because you can check for what you currently have as you order.
I think Amazon could make big waves in the pre-portioned meal service with this acquisition. I’ve been waiting for an actual grocery distributor to create something along the lines of BlueApron or HelloFresh. I’d love to log onto my Amazon account to order a modular weekly menu of supplies for 1-3 meals per day, adjusting portions for my needs in a way that also minimizes material / product waste. Amazon has been doing similar optimization work for years so I hope they apply this approach to their new grocery business.