On several recent visits to the Gaithersburg Amazon Fresh store, I noticed that some things I routinely buy cost more than long-established supermarkets located less than a 15-minute drive away charge for the same products. Case in point: On Dec. 8, Amazon Fresh was selling private label 1-pound bags of cut carrots for $1.69 — or $1.52 for shoppers who belong to Amazon Prime. Yet a Giant Food store a couple of miles away and even Amazon’s very own Whole Foods Market offered the identical item for 99 cents — more than 40% less. I found a similar disparity when pricing a 5.3-ounce cup of Fage Total yogurt at the three stores over the weekend. Amazon Fresh charged $1.89 for that product, while Giant offered it for $1.79 and Whole Foods, which regularly charges $1.89 for that variety of yogurt, had it on sale for $1.25. Bananas, meanwhile, were 59 cents per pound at Amazon Fresh and Giant, but just 49 cents per pound at Whole Foods. And a 7.5-ounce box of Annie’s cheddar squares cost $4.99 at Amazon Fresh, but just $4.69 at Whole Foods. The fact that Amazon Fresh sells some products sporting Whole Foods’ iconic 365 house brand muddles the pricing equation even more. Granted, the 25-ounce jar of 365 pasta sauce I saw during one of my visits to Amazon Fresh for $2.69 was $2.99 at Whole Foods. But as a consumer, I found myself trying to figure out why I was seeing Whole Foods products in Amazon Fresh — and wondering why I’d only save 30 cents on a product also available at a premium grocery store.
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Oh, the horror. By the end of next week, you will probably have read a thousand articles about how electronic shelf labels in grocery aisles are going to lead to a wave of unbridled corporate greed not seen since Michael Douglas, playing Gordon Gekko, busted out the defining line of the 1980's in "Wall Street." "If it’s hot outside, we can raise the price of water and ice cream," the article below quotes a grocery industry analyst named Phil Lempert saying. It's impossible not to read his hand-rubbing glee and wish you could ask him the next time it's hot outside, whether he'd like his power company to be able to raise the price of electricity too. He'd get a chuckle out of that, of course. Always laughing, that guy Phil, mostly at other people. Of *course* when it's hot out, his power company raises its prices. Of course when there's high demand, Uber and Lyft raise their prices. Of course when it's Spring Break, United and American raise their prices. You know who else is able to adjust their prices a thousand times a day, if they want to, to reflect both your needs and market conditions? Amazon. DoorDash. And if you happen to buy your groceries on InstaCart instead of driving to H.E.B. to spend half your evening waiting in the checkout line? Them too. There is nothing necessarily bad about dynamic pricing models. When you run your air conditioning at full blast during a heat wave, it is completely fair that you should pay for the privilege of enjoying your goose liver paté on artisanal crackers for lunch in a house that's the temperature of the dairy refrigerator at Costco while other people have to swelter in their homes all afternoon because your excess has led to rolling brownouts in your state. The flip side of higher prices for some people, of course, is lower prices for others: if you are blessed with a very large—or, alternatively, compulsively clean—family that produces a load of laundry a day, you could save $200 a year by drying their clothes in the middle of the night instead of the middle of the day. "Sure," you might say, prematurely defeated by these clever examples. "I'm willing to concede that dynamic pricing isn't necessarily the malevolent evil that Phil's maniacal and yet still somehow cringey laughter makes it out to be. I'm willing to pay variable rates for flights, dinner cruises, electricity, and Taylor Swift concert tickets, but I draw the line at groceries. Food should be sacrosanct. Like, what happens if you put your box of Cap'n Crunch in your cart when it's $5 and when you get to the checkout, it's $14.95?" Forsooth, my friend—and I hope your dentist is not reading this, or they should raise their prices on you too. When everything is digital, you'll start to see things like 60-minute price protection when you scan your loyalty card on entering the store, automated coupons, APIs... even discounts when you shop while your laundry is in the dryer. Information wants to be free. And your grocer does too.
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𝗔𝗺𝗮𝘇𝗼𝗻'𝘀 𝗚𝗿𝗼𝗰𝗲𝗿𝘆 𝗚𝗮𝗺𝗯𝗶𝘁: 𝗡𝗲𝘄 𝗦𝗺𝗮𝗹𝗹-𝗙𝗼𝗿𝗺𝗮𝘁 𝗦𝘁𝗼𝗿𝗲 𝗦𝗶𝗴𝗻𝗮𝗹𝘀 𝗢𝗻𝗴𝗼𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗿𝗶𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗙𝗼𝗼𝗱 𝗥𝗲𝘁𝗮𝗶𝗹. 🛒🏙️ Amazon just launched a pilot small-format grocery store in Chicago's River North, cleverly nestled in the same skyscraper as an existing Whole Foods Market. Key points: • 3,800 sq ft store with over 3,500 products • Offers "grocery top-ups," coffee, grab-and-go meals, and household essentials • Complements Whole Foods' natural and organic offerings • Part of Amazon's strategy to expand its grocery footprint This move showcases Amazon's commitment to convenience and customer-centric solutions. By allowing shoppers to access both Whole Foods and Amazon products in one location, they're saving time and potentially money for busy urban consumers. This pilot program could transform grocery shopping in urban areas. #Retail #Innovation #UrbanPlanning #AmazonGrocery #FutureOfShopping
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Interesting move by Amazon, stripping back food *frills* and opting for basic, if not offensively cold, packaging for Fresh shoppers. The direction seems odd given the demographic of those using Prime for delivered groceries. Focusing on more inventive and unique private-labeled products (like chocolate almond butter at Target) would be more appealing to said demo. This shift to mass-produced food products comes at a time when concerns over historically harmful food production and consumption are increasingly evident. #Amazon #Fresh #Groceries #whatsyourtake #thoughts
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Time to re-name Quick Commerce as Convenient Commerce? Nice tie up here between the New York Times and Instacart which makes a lot of sense: see a recipe you like in a newspaper, click to add all the ingredients to your cart and have them delivered to your door. Most people don't want groceries quickly; most people want groceries delivered in a convenient fashion and this is a great example of that. And importantly, many people are prepared to pay a premium for this kind of convenience. Tapping into the convenience shopper mission may well be the way that the struggling Q-Comm channel survives. #convenientcommerce #quickcommerce #newyorktimes #instacart #grocerydelivery https://lnkd.in/e3KZ96Jh
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Walmart is stepping up its game — and it might be coming for Trader Joe's with its new private label, Bettergoods. Bettergoods is a chef-inspired label with over 300 products, including fun and preimum-sounding ones like black-truffle butter and nondairy ice cream! Even better, especially amid rising food costs, a lot of Bettergoods items are under $5. Read Amena Ahmed's review that we published on Business Insider below. It's made me really want to head to Walmart to see what's on the shelves! #walmart #bettergoods #food
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Ready to launch your food business on Amazon? 🍿 Swipe through to unlock the secrets of selling food on Amazon safely and successfully! From gaining unrestricted access to the Grocery & Gourmet Food category to perfecting safety and quality standards, we've got you covered. ✅🏁 #AmazonSeller #FoodBusiness #eCommerce #SellOnAmazon #AmazonBrands
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Ocado Hacks Your Grocery List ( in a Good Way!) Have you Ever searched for Greek yogurt on Ocado and seen berries or granola pop up? It's not a mistake! Here's the deal: Ocado uses psychology (the "minimal effort" trick) to help you build yummy combos. Instead of just showing similar yogurts, they suggest the perfect "add-ons" - those extras that make your yogurt bowl amazing! What does it mean for you? More Fun Shopping: Ocado inspires you with new ideas, making grocery shopping less of a chore and more of a discovery adventure! Bigger Basket: Maybe those handy suggestions make you add a few more things to your cart. (It's a sneaky, but awesome, way for Ocado to help you out!) How does it work? ✨ It's all about the search bar magic! (A fancy way of saying how Ocado designs its website.) By learning what people buy together, Ocado can guess what yummy extras you might want with your yogurt. The Human Touch: ❤️ The key is suggesting things that go with your yogurt, not just another yogurt. Ocado isn't just selling stuff, they're helping you make a delicious creation! So next time you see those surprising search suggestions, remember - Ocado might just be your secret grocery partner-in-crime!
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🌟 Online vs Market: The Art of Choosing Freshness 🌟 In today’s fast-paced world, online grocery shopping has become a convenient solution for many of us. With just a few taps, fresh fruits and vegetables arrive at our doorstep. But is it truly the same as handpicking your produce? As someone who enjoys cooking and values freshness, I’ve experienced both sides. Ordering online is undeniably easy. It saves time and effort, especially on busy days. However, there’s something uniquely satisfying about visiting the market in person. At the market, I can: Inspect freshness: Touch, feel, and smell the produce. Choose variety: Spot vibrant colors and handpick the best items. Engage with vendors: Learn about the source and even grab a great deal! Connect with the process: It feels rewarding to carefully select what goes on my plate. On the other hand, online shopping often feels like a gamble. While delivery services do their best, I’ve had instances where the items didn’t meet my expectations – overripe fruits or less-than-fresh greens. For me, the joy of visiting the market is irreplaceable. It’s not just about buying; it’s an experience that ensures quality and builds trust in what I consume. 💡 What’s your take? Do you prefer the convenience of online shopping or the satisfaction of selecting your own produce from the market? Let’s discuss! #FreshChoices #HealthyLiving #OnlineVsMarket #PersonalExperience
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Thanks for sharing your thoughts, Dr Angelus Bernreuther, 🛒 **Amazon Exits Germany’s Grocery Delivery Market** Amazon’s withdrawal highlights the **unique challenges** of this sector. While their logistics prowess has revolutionized many industries, applying it to fresh food in a **price-sensitive**, **convenience-saturated**, and **tactile market** like Germany was always going to be a tough nut to crack—or 🥒 cucumber to sell, as you cleverly put it! --- 🤔 **But Is the Grocery Delivery Space Doomed?** Not so fast! 🚀 **Others, like Picnic and Knuspr, can learn from Amazon's experience.** - 🛻 *Picnic's innovative approach* stands out: - ✅ Tailored van designs. - 🌍 Testing in low-density areas before scaling to cities. - 🛠️ Localized, tailored logistics solutions. With the right strategy, they could carve out a niche in this **low-margin yet promising market**. --- 🍎 **Reinventing Grocery Shopping** Let’s face it: **many people dislike grocery shopping.** The key to success might lie in: 1️⃣ **Balancing convenience with freshness**: Bridging the gap between online and offline shopping. 2️⃣ **Hybrid models for traditional retailers**: - 🌟 Enhance in-store experiences for fresh produce. - 🤖 Automate bulky, recurring orders for quick pickup near parking areas. --- 🙄 *Personally,* I find it frustrating to: - Navigate crowded supermarkets. 🛒 - Load heavy items into a cart. 🏋️ - Unload them at checkout. 😤 - Reload them under impatient stares. 😅 --- 💡 **Your Turn!** How do you think **new players** or **traditional retailers** can: - Differentiate themselves? 🤷♂️ - Address these challenges? 🌟 Let’s discuss! 👇
Rᴇᴛᴀɪʟ 🛍️ ᴀɴᴅ ʀᴇᴀʟ ᴇꜱᴛᴀᴛᴇ 🏙️ ᴇɴᴛʜᴜꜱɪᴀꜱᴛ /// 👨🏻🎤 Kᴇʏ ɴᴏᴛᴇ ꜱᴘᴇᴀᴋᴇʀ /// 🎙️ Mᴏᴅᴇʀᴀᴛᴏʀ /// 🗣️ B2B Cᴏᴍᴍᴜɴɪᴄᴀᴛɪᴏɴꜱ /// Ex-Kᴀᴜꜰʟᴀɴᴅ ⚓ #ꜰᴏᴏᴛꜰᴀʟʟᴀɴᴄʜᴏʀ
𝗥𝗲𝘁𝗮𝗶𝗹 𝗜𝗻𝘀𝗽𝗼: 𝗧𝗵𝗲 𝗰𝘂𝗰𝘂𝗺𝗯𝗲𝗿 🥒 𝘄𝗶𝗹𝗹 𝗱𝗶𝘀𝗮𝗽𝗽𝗲𝗮𝗿 So, the time has come: Amazon, one of the major players in #eCommerce, will discontinue its food delivery service, Amazon Fresh, in December. For years, Amazon has persistently tried to entice me with a pre-configured cucumber in my shopping cart. I have steadfastly resisted. A look at the numbers is sobering. The market share for German #online #food has barely reached 3%, much of which likely does not include truly fresh goods, and this figure also accounts for other Fast-Moving Consumer Goods #FMCG. Compared to the overall volume of food spending (which constitutes more than half of the necessary purchasing power), online services are merely existing in a niche, often generating sales equivalent to just a few dozen brick-and-mortar retailers. 𝗙𝗼𝗿 𝗺𝗲, 𝘁𝗵𝗶𝘀 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹 𝗶𝘀 𝗻𝗼𝘁 𝘀𝘂𝗿𝗽𝗿𝗶𝘀𝗶𝗻𝗴: 💡 The supply from physical grocery providers in Germany is at such a high level that one can often reach several providers quickly. 💡 The price sensitivity in the German retail food sector, with its strong players, counters the elaborate delivery logistics. 💡 For most consumers, freshness means seeing, feeling, tasting, and smelling. This simply cannot be achieved online. Nevertheless, the world will keep turning here. 𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝗼𝗻𝗹𝗶𝗻𝗲 𝗳𝗼𝗼𝗱 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀? Let me also ask a few experts in this field Gerald Schönbucher Raimund Paetzmann 😍 You like this Retail Inspo? Please show me your opinion in the COMMENTS! ♻️ SHARE it to help others know these insights! 💡 FOLLOW for more inspirations!
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Amazon expands Grubhub deal in food delivery push Amazon is enhancing its Prime service by expanding its partnership with Grubhub, aiming to bolster its food delivery offerings amidst increasing competition for subscription revenue. Prime members will now get free access to Grubhub+, a $120-a-year subscription service that includes free deliveries on eligible orders and reduced service fees. Additionally, Amazon customers and Prime members can now order from Grubhub directly on Amazon's website and app. This partnership enhances Amazon's diverse food delivery network, which includes nonperishable food delivery, grocery delivery through Amazon Fresh and Whole Foods, and now takeout via Grubhub. Amazon CEO Andy Jassy noted that both the nonperishable and grocery sectors are experiencing growth. Neil Saunders, a retail analyst at GlobalData , emphasized the importance of this move for Amazon to remain competitive as other retailers develop their own loyalty programs. "Amazon already offers a lot of value, but it needs to keep pushing the envelope," Saunders said. This Grubhub perk reinforces Amazon's strategy to make Prime an all-encompassing membership program. Jamil Ghani, Amazon Prime's vice president, highlighted that the partnership with Grubhub aims to cater to the diverse needs of busy households across the U.S. by integrating convenience, savings, entertainment, and now food delivery into one membership. The initial partnership in 2022 allowed Amazon to acquire a 2% stake in Grubhub, with options for up to another 13%. Now, Prime members need only activate the ongoing Grubhub+ offer to enjoy the free benefit, transitioning from the previous one-year trial that converted to a paid membership. For Grubhub, owned by Just Eat Takeaway.com, this partnership helps expand its membership base, potentially increasing its commissions from restaurants. Shares of Just Eat have lagged behind competitors like DoorDash and Uber, which have seen stock price increases this year. While food delivery businesses thrived during the pandemic, questions about sustainable profitability remain. In contrast, Amazon shares have surged more than 20% this year, outperforming the Nasdaq Composite's 15% rise. This expansion of Prime's benefits underscores Amazon's commitment to continually enhance the value of its membership program. Stay ahead with the latest in food delivery news from the weekly Boolanga Business Bites newsletter, brought to you by Boolanga Business. Sign up for our LinkedIn newsletter now to receive weekly updates directly to your inbox every Monday.
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