Target (TGT) Battles for Survival

The goal of Smartly; however, is also to counter Amazon (NASDAQ: AMZN). Target’s management hopes Smartly will lure in customers by offering prices lower than anything Amazon can provide.
Few retailers are in more danger from Amazon than Target. Amazon competes for Target’s core customer base; the urban and suburban middle class, in particular.
For example, Target’s target customer is a 35-year-old suburban soccer mom. Unfortunately, that soccer mom is the person most likely to belong to Amazon Prime.
An obvious use of Smartly is to get people under 30 (Millennials) used to shopping at Target. Target hopes to turn those Millennials into loyal customers by the time they have kids.

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Kroger and Walgreens Team Up for Pickup

A Kroger/Walgreen hybrid is an obvious use of the capabilities provided by Ocado. A robotic fulfillment center could obviously support both Kroger supermarkets and Walgreen drugstores.

Moreover, a Walgreen drugstore is a logical addition to the 2,782 supermarkets Kroger operates. In addition, Kroger food brands like Simple Truth will be a logical addition to Walgreens inventory.
Importantly, Kroger operates 37 food manufacturing facilities across the United States. Therefore, Kroger offers Walgreens a source of low-priced food products to counter Amazon’s discounting.
Equally important is Kroger’s ability to provide hot takeout meals, meal kits, deli foods, and hot entrees to Walgreen. Markedly, Kroger has a good relationship with the delivery specialist Instacart.
Additionally, an obvious use for Instacart is delivery of Walgreens prescriptions. America’s growing legion of senior citizens will be obvious customers for prescription delivery.

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Massive Tech Disruptions include 5G, Autonomous Vehicles, and Amazon Delivery

Five gigabyte (5G) Wi-Fi will be the next big disruption in tech. For example, up to 1.2 billion people worldwide could have 5G by 2025.

Widespread 5G could make the Internet of Things (IoT), Artificial Intelligence (AI), drone, and autonomous vehicle use widespread, Interesting Engineering theorizes. For instance, they might use 5G to operate autonomous cars and power drone delivery networks.
Significantly, Amazon delivery threatens grocers like Kroger (NYSE: KR) home improvement stores like Lowe’s (NYSE: LOW), GrubHub (NYSE: GRUB), small box discounters like Dollar General (NYSE: DG), and department stores like Macy’s (NYSE: M). To demonstrate, Amazon Flex could deliver laundry detergent, clothing, groceries, takeout meals, and home improvement materials like paint in the same van.

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Kroger Tests Self-Driving Vehicle

In addition, Nuro’s self-driving Toyota Prius cars will make some deliveries. Delivery reportedly costs $5.96 per order and is only available from one Fry’s store.
This is the second self-driving vehicle delivery effort associated with Kroger. The Ocado Group Group PLC (LON: OCDO) is reportedly testing a self-driving delivery van in London. Kroger purchased 6% of Ocado last year.

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Can Kroger (NYSE: KR) Survive?

Normally nobody would ask if a company that reported $122.662 billion in revenues last year can survive. We are not

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Walmart approaches $500 Billion in Revenue

Obviously, Walmart and not Amazon is the world’s largest and richest retailer. More importantly, Amazon will not approach Walmart’s revenues soon.

Therefore, Walmart can sink money into its online operations; automated stores, and new technology. As a result Walmart will probably be able to keep up with Amazon; and possibly block its entry into some markets.

The moral of the store is do not count Walmart out. The world’s largest retailer has the resources to maintain its dominance for decades to come despite Amazon’s explosive growth.

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Is Big Lots Losing Money?

Big Lots survival might be impossible when its direct competitor is Amazon which had $27.05 billion in cash and short-term investments on 30 June 2018.

The real threat to Big Lots is not Amazon but changing consumer behavior. People are no longer willing to settle for what is available in the neighborhood.

Today’s shoppers are skeptical of all bargains, deals, and discounts. Instead of being excited when they see something offered for half price at Big Lots they ask, “what’s the problem?”

These new mentalities are fatal for a company that specializes in quick sales of unique bargains. Beyond that, Big Lots deals are not that special anymore. Anybody with internet access, (95% the population) has access to bigger retailers with better deals. To add insult to Big Lots injury many of those retailers offer free delivery.

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Is Amazon Sustainable?

Therefore, Amazon’s ability to disrupt will remain as a long it generates vast amounts of cash. Jeff Bezos has not built a company he has created a disruption machine that thrives on chaos.

There are some potential threats to the disruption machine. The greatest of which is economic collapse.

Geography is the other limit on Amazon’s disruptive capabilities. There are only so markets it can disrupt.

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Costco Accepts Apple Pay and Google Pay

The lack of a major hack of Apple Pay, Samsung Pay, or Google Wallet probably convinced Costco those solutions are secure.

Retailers are afraid of lawsuits from consumers who lost financial numbers to hackers. Target (NYSE: TGT) paid $39 million to settle such a suit in 2015.

Retailers like Costco might abandon NFC payment if crooks crack Apple Pay. Given the volume of Apple Pay transactions; over one billion in 2nd Quarter 2018 Tim Cook bragged, it is only a matter of time before some criminal genius cracks its encryption.

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The Facts About Online vs Offline Stores In 2018

Some of the biggest brands out there made the move to online retail a good few years ago, and although the infographic created by Red Brain shows they have had some incredible sales, it is nothing compared to what their sales are in their physical stores.

Although people appreciate a brand being online, they are not ready to see their favourite brands disappear from the high streets completely.

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