I had taken for granted the pain of checkout until I shopped an Amazon Go store for the first time. There is no question in my mind, after that one shopping experience, that this is the way of the future, and that it will accelerate the culling of the retail herd. This is something hard, and expensive, that all retailers will need to do well.
Amazon has not destroyed U.S. retail, quite the contrary. It has put it at the forefront of retail globally, destroying individual retailers that were over-leveraged or unable to compete for other reasons. However, that doesn't mean that Amazon's power in the market doesn't need to be checked.
This sounds very much like a modern take on indentured servitude to me. Maybe there is some fine print in the agreement that makes this make sense, but as reported it is a terrible deal for these merchants.
The U.S. online restaurant delivery market is estimated at $20+ billion by 2023, and online services like Yelp attract millions of people looking for restaurants. I find it entirely plausible that this virtual restaurant model can work. Working in midtown Manhattan, I see dozens of lunch restaurants that undoubtedly pay enormous rents, that are deserted 22 hours a day. Restaurants would simply swap rent expense for marketing expense, and might find that they come out ahead.
Retail (and business and life, more broadly) is not always a zero sum game and Counter is a perfect example. Rite Aid needs store traffic, Amazon needs to expand its brick-and-mortar footprint, and has realized that acquisitions of retail chains can be painful (Whole Foods).
I fundamentally reject the premise that online-only retail cannot work. I agree that there is a limit to how big companies can get without stores, but we all ought to appreciate that a healthy retail economy includes healthy small to medium sized players going after targeted niches as well as large players going after the mass market.
I think that this a great move for Krispy Kreme. Having worked in Times Square for years, I can attest to the fact that there are many, many, many tourists that lumber around looking for something to do after they've taken in the billboards and spotted the New Years Eve ball. Experiential isn't the right play in every retail environment, but Times Square is certainly the poster-child for it.
If Walmart used robots to only improve its in-stock inventory tracking it could be a gigantic win. 50 percent of Walmart's online volume now is being picked from store inventory, between click and carry and store-based delivery, but inventory uncertainty can dramatically hamper the effectiveness of those offerings.
The U.S. is so far behind the rest of the world in consumer technologies that we can't let an imagined issue of income-based inaccessibility slow us down. If we followed Philly's reasoning nationally, we'd not have e-commerce, where cash isn't a viable option.
I love this move from Target. Rather than parroting Amazon, they are leveraging their historic strength of merchandise curation. The role of merchant as curator is threatened by Amazon’s algorithmicaly driven merchandising strategy. This might be right for Amazon, but certainly isn’t the right move for all retailers.
I think that Chris, Paula and Adrian all hit the nail on the head: How fast is fast enough is critical for retailers to understand. The answer to this question requires benchmarking against relevant competitors - something that retailers need to develop a strong interest in.
This is a great idea. A perfect illustration of how brick-and-mortar retailers should be thinking about digital -- it's not just about e-commerce. Digital affords retailers and brands the opportunity to engage with consumers in meaningful ways. Most people won't use this, of course, because most people don't think deeply about eating healthfully. But for those that do, this could help tip them, in the long run, toward choosing Kroger.
In the book retailing business, there are two models that work: There is a place for local shops owned and operated by authentic, real people that love books and love talking to people about books (ideally, they have a friendly dog sleeping in the corner of the store). And there is a need for a big, faceless, mass market conglomerate that has everything for everyone, conveniently accessible with great prices. Barnes & Noble, as a chain, can never be the first and it will never be better than Amazon at the second.
Inaccurate in-store inventory is the single biggest problem hampering retailers' execution of click and carry (BOPIS), which is the most important initiative that promises to drive retailers' online efforts toward profitability. I can't say whether RFID is the best approach, or if the drones and robots that some retailers are experimenting with represent a better one or if there is something else on the horizon. But there is no doubt that solving the "I don't really know what's in my store" problem that plagues retail is necessary.
Kroger's acquisition of Home Chef makes a lot of sense. Home Chef seems to have found a sustainable mail-order business, but making meal kits available in Kroger stores will adds significantly more potential to the business. In today's world, with long work hours and busy family schedules, last minute meal planning is the norm.