VMSD - October 2017 - 37

"Amazon is on its way to
becoming the first trillion-dollar
company in history."
- Lee Peterson, evp, brand, strategy and design, WD Partners

time food retail analyst, agrees, "The ultimate
goal of the Whole Foods acquisition, I believe,
is for Amazon to encourage more customers to
do some of their grocery shopping online. That
will help speed up the point where Amazon can
become the main conduit of not only groceries
to the home, but also other things that could
ride along on that system."
But why are groceries so important? "Because
of the frequency of purchase," Bishop explains.
"It's what people do routinely, at least once a
week - and, more often, multiple times. Amazon
eventually wants to be the site where people place
their entire grocery order. And by being on the
Amazon site regularly for groceries, they'll make

more of their other purchases [there], as well."
For Amazon, the acquisition also made sense
from a supply chain standpoint, says Brian Shafley, ceo of design firm Chute Gerdeman (Columbus, Ohio). "Getting 400-plus physical locations
gives Amazon micro-warehouses in every meaningful market in the country. It gives Amazon a
half-dozen different directions in which to go."
That might include using existing stores as
laboratories for such innovations as Amazon Go.
Currently, Amazon Go - a "frictionless" shopping
experiment in which Amazon Prime members
simply scan their smartphone upon entry, select
merchandise and leave the store - remains in
beta testing in Seattle for employees only. Seam-

310 million
Number of active
Amazon accounts
worldwide
s ourc e: Am Az on.c om

85 million
Estimated number
of Amazon Prime
members in the U.S.
(A s of J u n e 2 0 1 7 ) s ou rc e: s tAt is tA

less transaction technology charges the purchases to the shopper's account automatically.
"At Amazon, we're constantly learning and
working to find new ways to delight customers.
You'll often hear us say that it's still 'day one,'
and that applies to both our traditional online
business, as well as other businesses like Amazon Go and Amazon Books," says an Amazon
spokesperson.
And Echo, a voice-controlled speaker that
can be used to place orders and control smarthome devices, is already in the marketplace -
including, now, in all Whole Foods stores.
"Amazon has already sold 5 million Echo
devices," says Peterson. "Bloomberg estimates
that there will soon be 25 million households
with [an Echo] on their kitchen tables ... Can
you imagine what could happen when Amazon
aligns with specific brands to promote those
Echo purchases?"
Being all things to all people was the strategy Walmart Stores Inc. (Bentonville, Ark.) perfected on its way to becoming the world's largest retailer, at a time when retailing was mostly
confined to physical spaces. That included
becoming the largest food retailer, as well, with
almost $300 billion in grocery sales. It's a model
Amazon founder Jeff Bezos likely has in mind,
according to Peterson.
"Somewhere in Bezos' office is a bull's-eye
on the wall," Peterson surmises. "And right in
the middle of that bull's-eye is Walmart." 
With additional reporting by Jennifer Acevedo.

vmSd.com

|

octobEr 2017

37


http://www.AmAzon.com http://www.vmSd.com

Table of Contents for the Digital Edition of VMSD - October 2017

Vmsd - October 2017
Contents
From the Editor
Vmsd Editorial Advisory Board
The Goods
Next Store
Dinner Is Served
Shopper Insig Hts: Show and Tell
Retail by You
From Clicks to Bricks
Showroom
Showroom
Ad Index
Checking Out
VMSD - October 2017 - Intro
VMSD - October 2017 - BB1
VMSD - October 2017 - BB2
VMSD - October 2017 - Vmsd - October 2017
VMSD - October 2017 - Cover2
VMSD - October 2017 - 1
VMSD - October 2017 - Contents
VMSD - October 2017 - 3
VMSD - October 2017 - From the Editor
VMSD - October 2017 - 5
VMSD - October 2017 - Vmsd Editorial Advisory Board
VMSD - October 2017 - 7
VMSD - October 2017 - The Goods
VMSD - October 2017 - 9
VMSD - October 2017 - 10
VMSD - October 2017 - 11
VMSD - October 2017 - 12
VMSD - October 2017 - 13
VMSD - October 2017 - Next Store
VMSD - October 2017 - 15
VMSD - October 2017 - Dinner Is Served
VMSD - October 2017 - 17
VMSD - October 2017 - 18
VMSD - October 2017 - 19
VMSD - October 2017 - 20
VMSD - October 2017 - 21
VMSD - October 2017 - 22
VMSD - October 2017 - 23
VMSD - October 2017 - Shopper Insig Hts: Show and Tell
VMSD - October 2017 - 25
VMSD - October 2017 - 26
VMSD - October 2017 - 27
VMSD - October 2017 - 28
VMSD - October 2017 - 29
VMSD - October 2017 - Retail by You
VMSD - October 2017 - 31
VMSD - October 2017 - 32
VMSD - October 2017 - 33
VMSD - October 2017 - From Clicks to Bricks
VMSD - October 2017 - 35
VMSD - October 2017 - 36
VMSD - October 2017 - 37
VMSD - October 2017 - 38
VMSD - October 2017 - 39
VMSD - October 2017 - Showroom
VMSD - October 2017 - 41
VMSD - October 2017 - 42
VMSD - October 2017 - 43
VMSD - October 2017 - 44
VMSD - October 2017 - Showroom
VMSD - October 2017 - 46
VMSD - October 2017 - 47
VMSD - October 2017 - 48
VMSD - October 2017 - 49
VMSD - October 2017 - 50
VMSD - October 2017 - 51
VMSD - October 2017 - 52
VMSD - October 2017 - 53
VMSD - October 2017 - Ad Index
VMSD - October 2017 - 55
VMSD - October 2017 - Checking Out
VMSD - October 2017 - Cover3
VMSD - October 2017 - Cover4
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