Mass-market supermarkets should remain on guard, he said.įocusing first on upscale shoppers allows Amazon to fine-tune its knowledge of this key demographic and raise shopper satisfaction scores to match rivals Whole Foods and Costco.īut more importantly, it may tempt ordinary supermarket retailers into believing that AmazonFresh doesn’t pose an immediate or major threat. It appears that they plan to compete directly with upscale retailers such as Whole Foods (NASDAQ:WFM) and Costco (NASDAQ:COST).”īut that’s only the first step in a two-step strategy, Bishop told International Business Times.
“The combination of Amazon prices and fees suggested that Amazon Fresh wasn’t targeting the mass market. “Industry fears about immediate competition with the online giant soon began to diminish, primarily for two reasons,” read the report.
grocers, grocery retail expert Bill Bishop wrote that mass-market grocers seem to be sighing with relief, despite nervous buzz earlier this summer over AmazonFresh’s expansion into several cities, beyond its current Seattle and Los Angeles markets.
This story was updated on October 3, 2013, at 4:15pm, with perspectives from former AmazonFresh executive Tom Furphy.Ī Inc.’s (NASDAQ:AMZN) online grocery arm, AmazonFresh, could be cooking up a smart long-term business strategy, according to one leading retail consultant. Amazon Fresh delivery vans are parked at an Amazon Fresh warehouse in California, June 14, 2013.
0 kommentar(er)
