One obvious possibility here is that Kroger is planning to buy Instacart. Such an acquisition is not farfetched; Kroger just sold its convenience stores for $2.1 billion which could finance an Instacart purchase. Target (NYSE: TGT); one of Kroger’s biggest competitors, has bought the shopping service Shipt and Walmart (NYSE: WMT) has plans to offer grocery delivery in 100 cities by the end of 2018.Read more
An interesting question here is should Amazon have bought Supervalu instead of Whole Foods? After all, SuperValu is a discounter like Amazon, and it services a general mass market rather than a select upper-class clientele.
SuperValu’s stable of private label grocery brands might have been a better fit for Amazon than Whole Foods’ line up. Grub Street reported that Whole Foods’ suppliers are in revolt against Amazon. That provides an opening for Kroger (NYSE: KR) or Walmart (NYSE: WMT) to poach some of Whole Foods’ suppliers.
An advantage that SuperValu would have brought to Amazon is a lineup of products directed at average middle and working-class customers the bulk of the consumer base. Another is a lot experience in the supermarket and grocery sphere and established stores in large metropolitan markets.Read more
Likely responses to Walmart’s offensive might be Amazon’s acquisition of a traditional grocer like Safeway or Winn-Dixie, or Amazon or Target partnering with traditional grocers such as Publix. Kroger might respond by buying InstaCart and joining Google Shopping Express.Read more
A true nightmare for dollar stores would be caught in the squeeze between Automated Walmart and Amazon Go. Dollar stores are already caught in the increasingly brutal crossfire between Amazon.com and Walmart.com.
The No-Man’s land between Automated Walmart and Amazon Go would be far worse. A true nightmare for dollar stores would be both retailers using their automated stores as neighborhood fulfillment centers for same-day delivery.Read more
Buying into Flipkart was a smart move for Walmart. It also makes WMT a smart diversified investment in retail stocks.
These statistics are bleak for Walmart because they indicate a large percentage of its customers will have a lot less money to spend real soon. To make matters worse, an increasing number of them will be dying off.Read more
EG Group has not said if it will continue the Kroger fuel rewards that Kroger convenience stores currently accept. Cutting out the fuel rewards would at the convenience stores would save both companies money.
Eliminating the convenience stores from the program would make it easier for Kroger to shut down the entire rewards points program. A strong possibility is that Kroger will only accept points at its filling stations, or make them just for groceries. Either way, there is a strong possibility that Kroger fuel points might die soon.Read more
My conclusion from these small figures is that Amazon’s business might not be sustainable because its ability to generate cash is limited. The e-commerce sales are not generating enough float to make Amazon a value investment.
A major problem Bezos will face here is Amazon’s dependence on the U.S. economy. If the current recovery does not work it, Amazon might face serious losses and Bezos will have to trim his operations.Read more
There is no doubt that Amazon is one of the most recognizable brand names in the whole world. However, its founder Jeff Bezos had a bit more modest goals in the beginning. Who would have thought that a simple online bookseller would become the world’s biggest online store?Read more
An intriguing possibility is that automated stores might be more competitive because they will offer a higher level of customer service. By freeing the cashiers up to help customers, many grocery stores might be able to offer a Nordstrom (NYSE: JWN) level of customer service at Walmart price. That will be the real game changer.
If history is anything to go by, Amazon Go is likely to be superseded by semi-automated stores. Nor is Amazon necessarily the company to take automated stores mainstream.Read more
Groupon is far bigger than you think, it posted $18 billion in revenues in 2017. The digital coupon service also reached $1 billion in sales, Those sales included 2.355 million airline miles, 4.405 million hours of yoga, 59.238 million slices of pizza, and 679 million miles of sushi rolls. Therefore Groupon is now a very big business.Read more