Saturday, June 17, 2017

Amazon Declares A War with Traditional Retail Stores

From this article, we know that Amazon again caught everyone’s eyeballs this Friday - the giant ecommerce retailer announced a buyout deal for Wholefoods that values over 13 billion. It now officially entered offline grocery business. Just like the author mentioned, this acquisition will change the retail landscape again as it will have an impact on how and where consumers buy perishable products, a retail category that Amazon used to be unable to compete with brick and mortar stores.

A great advantage it will receive from Wholefoods is to leverage its local network and supply chain for grocery delivery. If consumers are aware that such perishable products are delivered from local stores on the same day, they may just click the button and complete an order to avoid unnecessary and troublesome commute. If this scenario occurs, Amazon will successfully shift consumers mindsets and purchase behaviors again, just like how it made them abandon Barnes and Noble for books.

While Amazon is trying to tap into each offline market, other traditional retail stores aim to establish an ecommerce presence, competing against Amazon’s dominance in today’s market. For example, Walmart acquired last year and Bonobos, a menswear ecommerce site, just on Friday. It seems to be the only way for these traditional retail stores to be visible among consumers, given the fact that brick and mortar stores have lost favors and were forced to shut down or go bankruptcy. 

The link of the original article:

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