Amazon interested to open a new grocery store model separate from its Whole Foods Concept. The intent was that Amazon wanted to enter the grocery business by way of its Whole Foods acquisition, however their desire appears to exceed purely as a reformat and transformation of just that grocery brand alone. Their recent efforts as reported by the Wall Street Journal includes the plans of opening a grocery store in Los Angeles this year, with two other leases having been signed for locations to open by early 2020. Amazon is also in discussion for new locations at shopping centers in San Francisco, Seattle, Chicago, and Washington D.C. The train has left the station and there is no telling where they are going and what this retailer has up it sleeve!
Amazon is a known disruptor and they are very good at what they do. The grocery landscape is a competitive field. It will be interesting to watch how this sector shapes over the next 10 years. Groceries are such a large part to our lives here in America. It is a major driver of and vital to the strength of our domestic economy and plays such a large role in the overall world economy. The total economic impact of grocery manufacturing in the United States results in over 11 million jobs, $627 billion in labor income, and $1.1 trillion added to the nation’s GDP. If the U.S. Food Retail Industry were its own country, it would be the 3rd largest economy in the world by GDP between China at #2 and in front of Japan at #4. This means that grocery here in this country is extremely important to our economy. With the evolution of retail, the future success in the grocery sector by the individual participants will be the ones who can offer the customer the right mixture of “offering” and “price” while at the same time presenting the customer with a good feeling and experience.
About The Author: Jeff Dervech
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