Tom Dougherty, CEO – Stealing Share
23 January 2018
Amazon Go is another threat to the grocery market
Well, damn. Amazon completely revolutionized grocery shopping in one fell swoop with Amazon Go.
Stories flooding the newswires yesterday told of a bold new shopping experience that Amazon is bringing to light. Amazon Go, as described by its parent company, “is the world’s most advanced shopping technology. No lines, no checkout – just grab and go!”
To be a little more precise, your process begins by downloading the Amazon Go app on your smartphone. After logging in, enter the address of the store. (Right now, the service starts in Seattle.)
All you need is your bag and/or cart. Once you pick an item from an aisle and place it in your cart, it registers on your app and automatically paid for. It’s just as advertised. You go.
“The battle in groceries will be fought on brand. But Amazon Go tells big players like Kroger that the customer has changed. And you’d better change along them.”
No check-out lines. You don’t even need to talk to anyone. In today’s app-driven age, who doesn’t like that?
Amazon Go is another feather in the increasingly proficient and prolific cap of Amazon. The brand exuberantly places itself at the helm of mainstream technological pursuits.
Amazon Go puts groceries on notice
Just consider, for a moment, its recent accomplishments. The Amazon Echo represents the defining smart speaker that owns the category. Kindle e-reader remains strong despite intense competition from the iPad and the Nook. Its Fire TVs are now outperforming Roku.
And now Amazon Go, which threatens to transfigure how we shop for our groceries.
Of course, Apple, my long-standing partner in tech, invented this store concept first. You download the Apple Store app, scan and pay for a product without the aid of a salesperson.
But bringing the concept to groceries tosses a bomb in the middle of the industry. Right now, the big national and regional players dominate groceries, especially as grocers consolidate. The entrance of Walmart causes further disruption.
The battle in groceries will be fought on brand. But Amazon Go tells big players like Kroger that the customer has changed. And you’d better change along them.
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