Amazon to Expand Grocery Business With New Convenience Stores

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Why in the world would Amazon want to open convenience stores? I don't know what can be more convenient that having something delivered right to my door. How many of you think this is a good idea?

The Seattle company aims to build small brick-and-mortar stores that would sell produce, milk, meats and other perishable items that customers can take home, these people say. Primarily using their mobile phones or, possibly, touch screens around the store, customers could also order peanut butter, cereal and other goods with longer shelf lives for same-day delivery.
 
Maybe if they do an order-ahead system with a drive-thru you'd get the "on my way home, do we need anything?" business, but if they're going to be pretty much vs gas stations, my money is on the stop you already had to make anyway.
 
Bezos has run out of ideas to keep growth going hand over fist qtr to qtr. Does sustainability ever enter into the equation for corporations?
 
If you can pick free ship-to-store as an option instead of the $49 minimum for free shipping, I could see it working.
 
thesmokingman said:
Bezos has run out of ideas to keep growth going hand over fist qtr to qtr. Does sustainability ever enter into the equation for corporations?
Click to expand...
Absolutely not. If you're not growing you might as well be dead in their minds. They're not wrong.
 
thesmokingman said:
Bezos has run out of ideas to keep growth going hand over fist qtr to qtr. Does sustainability ever enter into the equation for corporations?
Click to expand...

Actually I think he is thinking about sustainability. But most of that thinking is actually based on their logistics at this point. The last mile is expensive for them and has largely been outsourced to the USPS, which is crumbling under the load. They need an exit strategy, or at least a pressure relief valve. They have been doing locker kiosk things for a while, but convenience stores are small, there is no longer anything resembling an 800lb gorilla in the segment, they can bring more margin or lower prices to the business than anyone in it, and they can likely reduce their shipping costs on a shit ton of stuff in their amazon pantry program like toilet paper and such.

All of that is forward thinking with regards to the sustainable maintenance of their supply channel, and keeping prime from bankrupting them or becoming too expensive to sell to as many people as they do.
 
I see this as Amazon's entry to compete against Walmart, Kroger, etc on fresh produce type items. Where I live, we don't have any delivery services yet. So, when I leave work or grocery shop, Amazon is not getting that money right now. The article I read (not WSJ) said about 20% of consumer spending is on these types of items. Right now, Amazon is not getting much of that 20% (produce, meat, etc). Hell, if they can grab 8-10% of that, that's a stack of cash.
My Amazon purchases of toilet paper, paper towels, and other household goods have recently increased a lot. Stuff I used to buy from Sam's Club - now delivered by Amazon. Every time I go to Sam's, it's probably a 3 hour round trip. I can beat prices if I shop around, but I don't get my time back.
The other day Amazon gave me 40% off of garbage bags using the Amazon Echo. Damn, talk about easy. When I'm in my kitchen, I build my shopping list by telling Alexa what to add to my list. I may not buy everything from Amazon (yet), but they have certainly started taking more of my money. I also use the Amazon store credit card - get an extra 5% back on my purchases. I bet Amazon pays much lower fees on their card than when I used my other rewards cards (Visa, Mastercard, etc).
 
I would totally place an order on Amazon for local fresh groceries then stop at the store on my way home to grab my pre-bagged stuff and get out.
 
raz-0 said:
The last mile is expensive for them and has largely been outsourced to the USPS, which is crumbling under the load. They need an exit strategy, or at least a pressure relief valve.
Click to expand...

They are crumbling under the load, literally. You see the drivers unload these massive boxes all plastered up with red and yellow stickers that say "Heavy" and "Team lift" and I just sit there wondering where is this lone mailman's "team" at.
 
Convenience stores are established businesses and the state governments would be hard pressed to block them like they can say an explicit Amazon pickup points or drive throughs. But if it was a convenience store first, with a pickup point feature, much harder to block.
 
I"m quite fine with having all my amazon packages delivered for a discount to a central place, pickup some produce that I need for dinner, and head home.

Amazon is making this so that all I have to do is drive up, scans my license plate and i pop the trunk and all a delivery person gives me everything I need. Ultimate convenience.
 
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