Target will have to up its delivery game dramatically just survive in that retail environment. Consequently, Target will need to spend a lot of money it lacks just to stay competitive.Read more
Moreover Amazon is buying 20,000 Mercedes-Benz Sprinter vans from Daimler (OTC: DAI) for the third-party delivery network. In addition to vans, third-party delivery services get access to Amazon-branded uniforms, a fuel programs, and low-cost vehicle insurance.Read more
The technological unemployment jobs apocalypse is coming to Middle America. Kroger (KR) and Britain’s Ocado Group PLC (LSE: OCDO) willRead more
Despite the success of Amazon, Costco Wholesale (NASDAQ: COST) is still one of the most followed retailers around. Costco canRead more
The driverless truck cruises down the street while a delivery person on foot takes the orders to the front door. The truck called the Cargo Pod was tested in London’s Royal Arsenal Riverside neighborhood, Endgadget reported. The vehicle is rather small and silly in appearance – it looks like a milk float to Brits and a large ATV to North AmericansRead more
Delivery can destroy Sprouts because it keeps customers away from Sprouts where they can see its low prices.
Traditional supermarkets depend heavily from all the spur-of-the moment purchases from shoppers in the store. How many times have you walked into a supermarket to “grab a couple of things” and ended up pushing a full shopping cart out the door?
Online shoppers only get what is on their shopping list, because they are not in the supermarket to get tempted by that extra stuff. That is good for customers’ pocketbooks but bad for Sprouts’ bottom line.
The traditional supermarket is a marketing machine cleverly disguised as a food store. Grocers fill their stores with temptations such as endcaps, free samples, delis, and cafes. The online shopper sees none of that stuff.Read more
Even if Supervalu keeps operating the distribution centers its new customer might be Amazon or Instacart.
A strong possibility is that Supervalu will get out of brick and mortar supermarkets and concentrate on selling groceries to delivery services. Its’ network of distribution centers is well-positioned for that eventuality.
Supervalu’s financials explain why Jeff Bezos is so interested in the grocery business. Grocers like Supervalu have a very strong cash flow, and Bezos loves cash.
Kroger also bought around 6% of the British online grocer Ocado, a press release indicates. Kroger and Ocado entered into a partnership and subscription agreement that will bring Ocado’s Smart’s Platform to the United States. That will give Kroger access to Ocado’s robotics and digital technology capabilities.Read more
The future of delivery will be specialist delivery firms such as Grubhub (NYSE: GRUB) and Instacart that concentrate on one kind of order such as groceries or hot meals. One-size fits all delivery such as that promoted by Uber Rush appears to be a flop.
Other delivery services will take the place of Uber and Lyft, and customer service should not be affected, Blakeman said. Walmart owns the same-day delivery service Parcel and is working with some other delivery services including Deliv and Google Express. Walmart is also working with Postmates and DoorDash, Reuters reported.Read more
This seems counterintuitive but taking advantage of online grocery delivery and ordering schemes can save you money.
Modern stores are sophisticated marketing machines designed to make you buy as much as possible – so the less time you spend in them, the less money you will spend. When you order online, you can get just the stuff on your list, and there will be no incentive for impulse buying.Read more