Will The Whole Foods Deal Help Amazon To Gain More Traction In The Grocery Market?
Next week is the annual Amazon Prime Day, on July 11th, but they will be starting their sales a few days early. It’s also expected that many other retailers are also going to be offering their own special deals to try and compete with Amazon.
This will be the third year in a row that Amazon has held the Prime Day celebration.
This year, the company is allegedly gearing up to introduce customers to some grocery offerings and trying to get more consumers interested in ordering their food online.
People are increasingly getting used to purchasing many things online, everything from phones, clothing, household items, musical instruments, grills, tools, sports equipment, jewelry, and more. But where the crowd has been slow to start shopping is with online grocery options. The majority of folks still just want to go to the store in person to get their food, rather than buy it online.
But maybe, after doing their deal with Whole Foods, Amazon is going to be able to change that. It’s expected that they will be using this Prime Day occasion to highlight their abundance of grocery offerings.
Their competitive grocery offers and quality service via fast shipping options etc, they hope are going to be enough to entice people to start to buy their food online; through the Prime program.
This Prime Day also won’t just be about groceries, as they’ve got deals going on for a variety of different items on the site.
Where Most Go Shopping For Food
For US shoppers, the majority today are doing their grocery shopping at Walmart, which is estimated to account for about 14 percent of the overall US grocery market share last year.
Some of the more popular locations to buy food for consumers in the US after Walmart, would be places like Kroger, Albertsons, Costco, Target, and HEB.
When it comes to grocery sales in 2016, Amazon only accounted for 0.19 percent and Whole Foods accounted for about 1.21 percent. Amazon still has a long way to go if they want to really compete with Walmart and the others who have a larger share of the grocery consumer market.
It’s estimated that over the next several years, that the Amazon/Whole Foods deal is going to contribute to a significant disruption in the grocery market.
Pics:
Whole Foods via Fortune
Amazon
Altavia
Sources:
http://www.cnbc.com/2017/07/08/amazons-prime-day-deals-luring-shoppers-to-its-grocery-department.html
http://fortune.com/2017/07/07/amazon-whole-foods-deal-timeline/
http://www.9news.com/money/consumer/ways-to-save/the-big-amazon-prime-day-deals-48-hours-early/455256738
https://www.forbes.com/sites/annabelacton/2017/07/06/the-future-of-grocery-shopping-what-the-amazon-wholefoods-merger-means-for-supermarkets/#18490a6c591c
http://fortune.com/2015/10/14/whole-foods-retail-software/
http://www.dividend.com/news/2017/07/06/what-amazon-acquisition-of-whole-foods-means-for-grocery-stores/
Why Aren't More People Shopping For Their Food Online?
https://steemit.com/food/@doitvoluntarily/why-aren-t-more-people-shopping-for-their-food-online
Can i buy things like laptop on amazon?
I dont see why not, but might not have a discount.
Okay
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yes.
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too much talk out of you.
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sure
Bye Bye Walmart, hello Amazon.
It's unbelievable....this giant is just taking over. Largest online shop, one of the biggest cloud services, massive fleet of planes and delivery vehicles, immense warehouses, largest online bookstore, the list just goes on...
I think it will definitely increase there grocery sales but the question is will it be enough to justify the cost of whole foods.
Amazon will be playing a long game and can afford to make losses for years if they see light at the end of the tunnel. Should also be remembered that in retail it is normal for some of your products to operate at a loss for example fruit and veg in a supermarket they sell it cheaply just to get people in the door and once they are in there they buy other more expensive things that have higher Mark ups. You could see Amazon doing something similar get people to come online daily to buy groceries and they will also pick up other high end items while they are there.
Its happening right here in the Silicon Valley, few of my clients in my sunnyvale location of one of my gyms work at Amazon, and they said the plan is to acquire Whole foods, then go right into grocery, and implement the no cashier, maybe a manager on site, and security guard and you walk in grab what you need and walk out and all charged to your phone/card. Crazy!
Haha, perfect!
Since one percenters own almost 99% of the wealth you won't find Oprah in whole foods shopping. The affluent which is growing exponentially will quickly learn to simply call Whole Foods and have everything delivered to their door. They are rich and can't be bothered shopping for food while they could be out pricing helicopters, yachts and evening gowns.
Jeff Bezos is happy to deliver it all to their door.
This paints the wealthy in a very negative manor. Why are they evil for making money and paying for services? These services creates new jobs for other people. Oprah as you put it will probably rarely if ever go shopping. So she most likely hires staff to do the shopping, usually house keeping or household managers. I don't see too many of these people online shopping, even if it's Wholefoods. They still need someone at home to put it all away and cook it.
Its something Ive thought of trying bought never pulled the trigger. I might just take a look and see what kind of deals they have, maybe Ill order my first food online lol
We are getting Amazon in Australia soon, local retailers are starting to panic, there are estimations that the will gobble up to 30% of retail sales. Going to be interesting to see what happens here. Thanks for sharing cheers.
I use Amazon on a regular basis order all sorts of stuff from cameras to travelgear and even cosmetics. Living in the Netherlands we can only order at Amazon Germany or Amazon US. Since Amazon Germany is much closer and thus faster delivery this is the go to for me. Also in Germany many things are cheaper than in the Netherlands. I wonder if they will only unroll the groceries department in the US because I have not seen in on the German Amazon. Also in the Netherlands we have many supermarkets doing the internet thing so I think for here Amazon might not have a big succes. Is there already another party in the US who is doing groceries home delivery besides Amazon?
Im really hoping this deal lowers the cost of groceries at whole foods. i sort of doubt it but im still hopeful. amazon was already headed the grocery direction and whole foods has been on the market for a while so in a way it shouldnt have been so surprising.
in the future i imagine when you order your groceries online theyll jus tbe delivered same day if before a certain time. They already do this in some cities and they are constantly building new fulfillment centers to reach all areas of the US faster. This coupled with their expanding shipping fleet (trucks and now planes) i dont imagine it will take too long for it to be normal to get groceries delivered.
my local grocery store is kroger, who just came out with their "clicklist". Basically buuy what you want online and them park in the designated parking spaces and they bring your groceries out to you. From the looks of it, it has been very successful, and i can understand why it would be appealing to people.
I'll tell you what we just got a new food delivery iPad specifically for Amazon at my restaurant. I guess Amazon does food delivery from restaurants now........ they are taking over the world.
I think Amazon will try to push the online grocery shopping at some point. And people will get into it eventually. because it will become easier to shop this way.
What's easier? To go on the market, select your groceries and get back home or to just browse what you want and click, place your order and it's at your door in one hour?