Amazon Go is not your Mother’s Brick and Mortar Grocery Store…Anymore
By Ron Lunde / December 2016Guest Contributor, Insights, News
For all those who thought Amazon was going to build a traditional brick and mortar store of any kind … WRONG! Never thought it made sense for them to just build a brick and mortar store. That would not be Amazonian. Guess what… the Amazon people are …different.
Watch the embedded video, you’ll see just how differently the Amazon folks think about serving their customers better than anyone else can.
If you watch this video carefully, you will begin to understand exactly how they plan to upend the entire traditional retail store selling and operations model. How you ask? For a start … Amazon just decided to make the customer or the customer’s device the UPC or QR code. That one insight completely changes the customer and operational experience. That single insight allowed them to develop some extraordinary software and hardware applications designed to support a ‘frictionless’ customer experience.
Granted … it is a limited item selection store … just like Aldi. But Aldi is very successful in the US and around the globe. What Amazon could add is the ability to order virtually anything you want out of the millions or so items they stock and have it waiting for you at the store within 1 hour or so after you order it. If this works for grocery … why not books … or clothes, or cosmetics … or???? Rumors are that they are also looking at Pop-up stores in various other locations… great for seasonal or fashion?
No doubt Jacksonville, Florida has the potential to rapidly deploy this type of store. They are building 2 major distribution centers in the city. Extraordinarily sophisticated logistics capability and retail vision will be available to over 1 million people.
Again, because they always figure out breakthrough innovation… how do you compete with these guys?
Sure bet they will Patent all this, which makes it harder for anybody else.
Contributed by Ron Lunde, Senior Marketing, Advertising Executive & Market Strategy Consultant. Ron held senior management positions in grocery retailing including Supervalu, Grand Union and Price Chopper. He was also a Sr. VP. at the Leo Burnett Advertising agency. Ron is credited with introducing Space and Category Management systems to the industry as well as working with the Price Chopper team to introduce and deploy the first data driven frequent shopper program in the US. He was also a consultant to the Financial Accounting Standards Board in developing the Issues that govern the accounting requirements for all trade promotion and marketing expenditures. Lunde currently serves as a Market Strategy consultant to retailers and CPG brands.