Amazon, Washington Post, Rachel discussed on First Light
Year. Amazon is expected to account for fifty two point four percent of all of the e-commerce market in the United States. That's up from forty eight percent. Just last year. And of course, the key to their success is getting people to sign up for prime membership. And that makes it really loyal base. We've got more than one hundred million Americans signed up now and they pay. I pay twelve ninety nine a month. One hundred nineteen dollars a year. You get things like a free shipping into our delivery in some areas, you get discounts at the whole foods grocery stores that they own access to prime video prime music. They're getting into everything. And now, they're buying up grocery chains regional grocery chains. And they're launching their own grocery train chain. So I would like to do is we're going to bring in Rachel seagull. Now, she is a writer with the Washington Post, and she's been covering this. So she joins us now. Rachel is Amazon. Now looking to just dominate the grocery business like it has been doing with retail. You know, it's it's a bit hard to tell at this point. But it is true that Amazon is looking to increase its grocery game at that would be a pretty big sector for the company Amazon, I put a foothold in the grocery store industry when it bought foods a few years ago that was also a pretty big opportunity for Amazon to gain another foothold in a brick and mortar space. Learn the grocery game get sales data from its grocery shopper is. So this is part of their next frontier. That would certainly be something to keep an eye on. So based on what you've been able to find out so far how is this different from owning whole foods or they have their Amazon go stores, which you go in there. You don't even have a checkout. You just use your phone, and you walk up and you pick stuff up, and you leave and it's all done automatically on your phone. So how how is this different? Some of these questions are a little bit hard to answer at this point. But analysts were describing to me how whole foods is still somewhat niche grocery store franchise. So, you know, whole foods the prices are relatively higher. It focuses on a Ganic and natural products and analysts were describing to me how at Amazon is really trying to. To carve out share of the trillion dollar US grocery market that they're probably gonna lean towards something a little cheaper a little bit more accessible to everyday shoppers, more traditional items that aren't just organic or natural. So that's one way. And then as far as the Amazon does stories go, you know, those stories are really geared towards people who are very comfortable with that level of technology. There are no checkout line Serrano cashiers. There are cameras watching your every move seeing what you pick up seeing what you put down and again, it's hard to say definitively. But my guess would be that if they're looking to launch these grocery stores with his wider rita's possible that they would also want them to be as accessible to as many people as possible. So, you know, my guess would be that that level of technology might not be what they're trying to carry over to their grocery stores. But again, I mean who knows? This is a plan that they're trying to take a few years down the line. There may be some technology that we're not familiar with yet. So something to keep an eye on. We're talking with Rachel Segal of the Washington Post about her story on Amazon launching its own line of grocery stores. I was very interested to see that Amazon. Got a lot of information. Just in the short time that it is own whole foods, which I guess they're not going to use to open up their own brand of stores. They obviously have grocery sales data from whole foods. But they also got a little bit more of a window into how its prime shoppers are shopping. So, you know, most shopping that its prime customers do is all online whereas with their whole foods stores. They have a little bit of a window into what kind of decision shoppers are making in real time. And in person, the diet is a way to basically carry their data over into the brick and mortar space in addition to just generally what American shopping habits are what they're buying when whether they're migrating towards sales what choosing to buy what they're not choosing to buy. So if we think about all of the. Troves of data that Amazon has on our lives already. Now, they've got this window into our shopping for groceries. So you quote, a Brian Yarborough who's an analyst with Edward Jones. Who says that Amazon's going to be locking in shoppers who make basic purchases all the time. So could this lead to a less diversity in terms of what you can buy grocery stores? If this is successful. I think what Brian was talking about is, you know, one of the best things Amazon can use with data is figuring out what shoppers are wanting to buy when and he was describing how groceries are basically, you know, one of our most basic repeat purchases, something we go to time and time again, something that we tend to buy in repeat patterns, and he was describing how you know, if you can really get to the if you can really pinpoint what shoppers are buying consistently predictably that that is a really strong data point for you to be able to have and grocery is sort of the perfect example of something like that, especially if we're talking about grocery stores that aren't necessarily more upscale like a whole foods, but a place that people are going. To however, many times per week by the exact same things time and time again. And that's a data point that Amazon could really benefit from the new reporting. Did you pick up how Amazon is planning to go about this? I mean, will they just be building their own stores from scratch are they going to be buying existing stores or existing chains. Again. That's a question. That's a little bit hard to answer at this point. So on Friday, it's important to note, the Wall Street Journal side that their own sources saying that Amazon was looking to open these stores across the country. Some as early as this year Amazon to me would not confirm any details. One way or the other. So there's a lot of speculation as to how Amazon grocery stores could disrupt the grocery game little bit more broadly. But as far as you know, exactly what shopping centers they're going to be entering into exactly what types of customers. They're going to be targeting. A lot about is still pretty speculative at this plant. I guess it's probably also too early to tell how prices will match up with the existing store chains. It's so it's so early that I would assume that they'll come out and say, you know, maybe by a prime membership without giving give shoppers deal, right? So another thing that Brian Yarborough Brian Yarbrough the analyst, and I were talking about is that this could be a huge way for Amazon to get access to a whole 'nother crop prime members. You know, if if there is like you were saying some link between a discount at the grocery store and having a prime membership or say advantage to more pick up into livery options or something like that that that could be a huge way to tap into new prime. Memberships another interesting thing to think about in terms of pricing is that you know, I was wondering how Amazon we'll try in pretty clearly distinguished Lyons to make sure that whole foods its own grocery store line. It's separate pickup and delivery services won't compete with one another. I imagine that that's something that they would be thinking about and trying to figure out ways to make all of those different parts of their grocery plan, you know, sort of together as opposed to compete with each other. So that's another thing to be thinking about in terms of you know, how their pricing how they're marketing how their advertising things like that. It's fascinating to keep tabs on Amazon's broader plan. It certainly I think it's certainly fair to say that this purchase of whole foods a couple of years ago with a step into Amazon trying to assess what it would be able to do with grocery it. Hopefully, we'll have some some firm details to get more of a sensitive. Exactly what sort of disruption or impact is going to have in the near term. All right. Thanks, rachel. We've been talking with Rachel Siegel. Who writes about business issues for the Washington Post? Joining us this morning. Thank you very much. Rachel works for the Washington Post. The Washington Post is not owned by Amazon, but is owned by Jeff Bezos who also owns Amazon, although Jeff Bezos is said to not have any editorial control over the newspaper. We are at sixteen minutes before the hour. Our number is eight hundred seven three six three six six six. Tell us you're gonna shop at Amazon stores if they get into now, the brick and mortar grocery chains. Do you worry about that? Do you worry about Amazon taking over everything having too much power over the freedom loving people of the United States of America? It's something that we have to be concerned about because you know, the future is coming. It's about the run, right? Over us. Amazon could be in the driver's seat. So call us eight hundred.