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Grocery Strategy Defined: Deconstructing the Amazon Fresh Playbook
- Discussing insights from in-store observations at an Amazon Fresh store
- Exploring Amazon's unique approach to grocery shopping and how it differs from conventional grocers
- Examining opportunities for Amazon in the grocery industry
Observations at the Amazon Fresh Store
- Photo analysis of the in-store pick process and how it differs from other grocers
- Discussion of the number of pickers in the store at a given time and how it varies
- Exploring the prepared meal section of the store and its placement and visibility issues
Amazon's Shift to Physical Locations
- Examining Amazon's shift to physical locations and how it differs from conventional grocers
- Discussion of Amazon's online order share and the percentage of orders that are delivery vs. pickup
- Exploring how this creates opportunities for Amazon in pricing and other areas that conventional grocers cannot match
Opportunities for Amazon in Grocery
- Discussing examples of how Amazon can leverage its unique approach to grocery to gain an advantage
- Examining Costco's approach to bifurcating pricing to reflect the higher cost of online shopping
- Summarizing insights from in-store observations at Amazon Fresh and the unique opportunities for Amazon in the grocery industry
The Incredible Logistics of Grocery Stores
- Wendover Supermarkets are a modern marvel of the global supply chain
- The concept of the modern supermarket originated in the US and has since spread globally
- Supermarkets offer an average of 30,000 product choices, available 92% of the time
- The American supermarket landscape is highly consolidated, with the top four companies holding 45% of the market
- Independent grocers also rely on gigantik cooperatives for buying power and supply
- This market concentration has led to the massive scale and complexity of the current food supply chain
- Supermarkets use barcode labeling and inventory management software to keep products in stock
- Manual counts are conducted every month or two to determine actual product count
- Inventory management software can account for external factors like sales and seasonal demand
Challenges in Keeping Products in Stock
- Some products are difficult to keep in stock due to their seasonality and production limitations
- Grapes, for example, have a short harvesting window and are sourced from across the hemisphere
- Supermarkets must balance keeping products in stock with minimizing excess inventory to maintain financial stability
- Modern supermarkets offer an incredible variety and stability of product choices
- The complexity of the global supply chain required to maintain this stability is truly stunning
- Supermarkets must balance numerous factors to keep products in stock while maintaining financial stability.
TOUR OF THE NEW AMAZON FRESH GROCERY STORE!
Welcome back to another vlog, Boss Fam! In this video, I'm taking you on a tour of the brand new Amazon Fresh store in Woodland Hills, California. It's been open for about a week now, and I was blown away by the whole grocery shopping experience. So, I decided to bring you guys along to see what it's all about.
- Welcome to a brand new vlog, Boss Fam!
- I'm taking you on a tour of the brand new Amazon Fresh store in Woodland Hills, California.
- It's been open for about a week now, and I was blown away by the whole grocery shopping experience.
- So, I decided to bring you guys along to see what it's all about.
Features of the Amazon Fresh store:
- The store has everything you need, from fresh foods to liquor and hot food.
- They have specials and ads, just like a regular grocery store.
- The store has free EV charging stations, which is great if you have an electric vehicle.
- They have regular shopping carts and the cool thing is they have these high-tech things called dash carts, which you scan a code that's on your Amazon account, and then it registers it as your cart.
- The store has cameras to read items and give you your subtotal.
- You can print a label for your vegetables and place it on the bag.
- They have a fresh kitchen area where they bake fresh French bread and have fresh hot items.
- Overall, I was impressed with the whole grocery shopping experience at the Amazon Fresh store.
- It's a unique and innovative approach to grocery shopping that I think many people will enjoy.
- If you live in the Socal area, you have to come check out this store.
- Thanks for watching, Boss Fam! Don't forget to give this video a big thumbs up and hit that subscribe button.
How Amazon Changed Whole Foods, Five Years Later
How Amazon Has Changed Whole Foods Since Acquiring It in 2017
In 2017, Amazon acquired Whole Foods for $13.7 billion, and since then, the grocery store has undergone significant changes. Here's a look at how Whole Foods has evolved under Amazon's ownership and whether the deal was worth it.
1. Biometric Payment Option:
- Whole Foods now offers a palm-scanning payment option, which is already available in 20 stores and rolling out to 65 more soon.
2. Skip Checkout:
- Two Whole Foods locations allow customers to skip checkout altogether, thanks to a series of cameras and scales that watch their every move.
3. Lower Prices and Increased Locally Sourced Products:
- Under Amazon, prices have dropped, and the number of locally sourced products has gone up by 30%.
4. Weekly Prime Member Deals:
- Aisles are scattered with signs for weekly prime member deals, and shoppers fulfilling online orders.
5. Amazon Packages:
- Amazon packages can now be picked up or returned in store.
6. New Whole Foods Locations:
- Sixty new Whole Foods stores have opened in the last five years, while six locations were recently closed, and there's a new incoming CEO.
7. Whole Foods Market:
- Whole Foods now has 100,000 employees across 512 stores in the US, 14 in Canada, and seven in the UK.
8. Niche Grocer:
- Whole Foods was a niche grocer that catered to highly affluent grocery shoppers.
- Other chains started carrying specialty products, often at lower prices, which led to investors pressuring Whole Foods to sell or change the business model.
10. Private Label Brands:
- Amazon has been slowly starting to replace many of the purchases in Whole Foods with its private label brands, which has allowed them to bring prices down.
11. Centralizing Operations:
- Amazon has cut Whole Foods costs by centralizing some operations, moving them from individual stores to its Austin headquarters.
12. Personalization Algorithms:
- Amazon's massive amount of data now helps optimize what brands are sold in what stores, allowing for personalization algorithms.
13. Enhanced Standards:
- Whole Foods has more than doubled its list of banned food ingredients, enhanced the standards for canned tuna, eggs, and chicken, and minimized plastic with new types of produce bags, rotisserie chicken containers, and straws.
14. Local Producers and Accredited Programs:
- Whole Foods now has an accelerator program for local producers to earn a spot on their local stores' shelves and certified training programs to turn hundreds of Whole Foods workers into accredited cheesemongers and butchers.
Whole Foods has changed significantly under Amazon's ownership, and while the grocery store still controls just over 1% of the grocery market compared to Walmart's 19% and Kroger's 9%, Amazon's investment has allowed it to make inroads with new customers, lower prices, increase locally sourced products, and enhance standards. However, it remains to be seen whether Amazon will ever become the largest grocer in America.
Grocery Strategy Defined: Deconstructing the Amazon Fresh Playbook
Music, a topic of discussion between two individuals, leads to insights about Amazon Fresh store operations and how they differ from conventional grocers.
Observations at Amazon Fresh Store:
- The photo sent by one individual depicts a bright orange background and a relatively empty store at 6:30 pm.
- The store is primarily staffed with employees assembling online orders rather than customers shopping.
- The carts used for in-store picking are smaller and labeled with pre-printed order staging labels.
- The store has a prepared food section similar to that of Whole Foods, but it is not visible until the last corner of the store.
Shift to Physical Locations:
- Amazon Fresh has a high percentage of online sales for delivery or pickup, with little contribution from inside the store.
- Amazon Fresh's order share between delivery and pickup is significantly higher for delivery compared to grocery stores.
- Amazon's couriers, the Amazon Flex drivers, fill up in the pickup spots, but many of them are batched out to deliver six to eight orders from that store.
- The volume of online orders driving the volume through the store provides opportunities for Amazon that conventional grocers cannot consider.
- Conventional grocers can bifurcate their pricing to reflect the higher cost of shopping online and communicate this clearly to customers.
- Costco has done a relatively good job of communicating this point to its customers and encouraging them to shop inside the store for the lowest prices.
Amazon Fresh's operations differ significantly from conventional grocers due to its high percentage of online sales and in-store picking methods. The observations and insights from the Amazon Fresh store provide opportunities for Amazon and conventional grocers to improve their pricing strategies and communication with customers.
TOUR OF THE NEW AMAZON FRESH GROCERY STORE!
Hey Boss Fam, it's Damian here and welcome back to another vlog! Today, I'm excited to give you a full experience of the brand new Amazon Fresh store, which just opened up in my own backyard here in Woodland Hills, California. If you're in the SoCal area, you have to come check out this store! It's one of a kind and I was blown away by the technology of the whole grocery shopping experience that Amazon is giving us.
So, let's get started with the tour!
- Damian welcomes viewers to a new vlog and introduces himself
- He talks about the brand new Amazon Fresh store and how it's one of a kind
- Damian invites viewers to come check out the store if they're in the SoCal area
- Damian shows viewers the outside of the store and points out the free EV charging station for electric vehicles
- He explains that viewers don't need an Amazon account to come inside the store but he has one and shows it to the staff
- Damian grabs a dash cart, which is a high-tech cart that you scan with your Amazon account to register it as your own
- He shows viewers how to add items to the cart and how the cart reads barcodes and updates the total automatically
- Damian demonstrates how to weigh vegetables using the provided scale and how to print a label for the bag
- He takes viewers to the hot kitchen section of the store and shows off some of the fresh items available
- Damian thanks viewers for watching and encourages them to give the video a thumbs up if they enjoyed it
- He reminds viewers to come check out the Amazon Fresh store if they're in the SoCal area
- Damian signs off and invites viewers to join him for his next vlog.
Raising a Grocery Store Lobster as a Pet
In this article, we will be discussing the trend of keeping grocery store pets, particularly lobsters, as pets instead of consuming them. Inspired by the videos of others doing the same, the author decides to start their own series on this trend.
Grocery Store Pets:
- Last video featured a crab named Pancake
- Today, the author goes to get a lobster
- The author picks up a 260-gallon tank
- After setting it up, the tank is ready for the lobster
- The author also rescues a smaller lobster and names it Toast
Setting up the Tank:
- The tank is set up with sand, rocks, fake plants, and coral
- A shelter is made using a pet carrier and rocks
- Water is added carefully with the right temperature and salt levels
- A wave maker and a filter system with bio balls and beneficial bacteria are added
- Technical details such as aerators and a siphoning mechanism are explained
- The author introduces Waffle to her new home
- The rubber bands are removed from her claws
- Waffle explores every corner of her new habitat
The trend of keeping grocery store pets as pets instead of consuming them is gaining popularity. With proper care and attention, these creatures can thrive in their new homes. The author looks forward to introducing more grocery store pets in future videos.