Amazon incoming ...
#16
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Amazon incoming ...
What Amazon has bought is a niche chain of groceries, effectively giving it a network of distribution points for retail food distribution.
For not much more than they paid for Whole Foods they could have bought one of America's largest groceries (Kroger), and more than a couple of thousand large supermarkets, but they didn't, they bought a small niche grocer and paid little more than a rounding error on the Amazon corporation balance sheet for it, which is hardly an overwhelming vote of confidence in brick and mortar retail. And that really isn't "popping up all over the place". ..... I hear they opened a bookshop too, and "may open more"!
For not much more than they paid for Whole Foods they could have bought one of America's largest groceries (Kroger), and more than a couple of thousand large supermarkets, but they didn't, they bought a small niche grocer and paid little more than a rounding error on the Amazon corporation balance sheet for it, which is hardly an overwhelming vote of confidence in brick and mortar retail. And that really isn't "popping up all over the place". ..... I hear they opened a bookshop too, and "may open more"!
Opening a bookshop in today's world does seem to go against the grain. Maybe its the power of the people that makes it worth while.
#17
Re: Amazon incoming ...
It sounds like you might not be familiar with the complete history of Amazon, what their original on-line niche was.
#19
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Amazon incoming ...
Interestingly Walmart who have kept their online pricing the same as in store are now starting to charge more for online for items certain because the cost of shipping is making it unprofitable.
Consumer has a choice, pay for shipping and wait or pay for petrol and get the product ASAP.
Consumer has a choice, pay for shipping and wait or pay for petrol and get the product ASAP.
#21
Re: Amazon incoming ...
Walmart had what I wanted at a competitive price, and I could choose "pick up from store", so getting it pretty much immediately. I paid on-line and trundled off to the local Walmart to collect my purchase, .... where I found that the TV I had bought was marked up at $50 more than I had just paid!
Good job Walmart - screw the poor customers who buy in-store, and sell at a discount to the on-line middle classes!
#23
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Amazon incoming ...
That's not actually true. I went to buy a TV a couple of years ago, looking at Amazon, as well as Best Buy (a leading US retailer of home electronics and appliances), and at Walmart.
Walmart had what I wanted at a competitive price, and I could choose "pick up from store", so getting it pretty much immediately. I paid on-line and trundled off to the local Walmart to collect my purchase, .... where I found that the TV I had bought was marked up at $50 more than I had just paid!
Good job Walmart - screw the poor customers who buy in-store, and sell at a discount to the on-line middle classes!
Walmart had what I wanted at a competitive price, and I could choose "pick up from store", so getting it pretty much immediately. I paid on-line and trundled off to the local Walmart to collect my purchase, .... where I found that the TV I had bought was marked up at $50 more than I had just paid!
Good job Walmart - screw the poor customers who buy in-store, and sell at a discount to the on-line middle classes!
#24
Re: Amazon incoming ...
You also stated that on-line purchases would cost more than in store purchases, yet historically I noticed that the opposite was true, which I thought was interesting and worth noting. Maybe you don't agree.
#25
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Amazon incoming ...
I was only pointing out that they "have started" at least two years ago.
You also stated that on-line purchases would cost more than in store purchases, yet historically I noticed that the opposite was true, which I thought was interesting and worth noting. Maybe you don't agree.
You also stated that on-line purchases would cost more than in store purchases, yet historically I noticed that the opposite was true, which I thought was interesting and worth noting. Maybe you don't agree.
And on top of that, once you get the consumer in the front door then the in store experience can go to work.
Amazon knows this which is why they are growing bricks and mortar.
#26
Re: Amazon incoming ...
* Smaller, privately owned book stores are usually "just a book store".
#27
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Amazon incoming ...
No, US book stores, at least the surviving chain ones*, have diversified into many loosely related areas, commonly including a coffee shop, and selling records, CDs, and DVDs, children's toys, jigsaws, gift stationery, and hardware for viewing ebooks.
* Smaller, privately owned book stores are usually "just a book store".
* Smaller, privately owned book stores are usually "just a book store".
#28
Re: Amazon incoming ...
For instance, the grocery store that you just walk in, pick up the groceries and walk out (explicitly getting away from than human element beoz). They picked up Whole Foods because of their brand, and the possible margins. The bookstores are mainly at colleges, so a very particular stock set. And then we have the drones...
Pull it together and you can kind of see at the target they are aiming at. Local distribution centres capable of using drones to complete the delivery, accept returns, and act as a brand focus - all with the minimum of people involved and with their online system as core.
Their obvious next assault is on the groceries shop - and this is them gearing up and understanding how they can beat the likes of Coles at their own game.
And all being developed off the cash that would otherwise go to the government in taxes.
#30
Re: Amazon incoming ...
I'm just waiting to see if they turn on Alexa in Australia properly so I don't have to persuade it I'm in the UK.
And having a chuckle over how many aussie financial 'experts' are tying themselves in knots to try and justify "Australia is special, we are different, our retail is world class".
And having a chuckle over how many aussie financial 'experts' are tying themselves in knots to try and justify "Australia is special, we are different, our retail is world class".