close
close

Consumers hope Amazon-Whole Foods merger will provide better shopping experience

(BI Intelligence)

This story was delivered to BI Intelligence “E-Commerce Briefing” subscribers. To learn more and subscribe, click here.

Consumers are excited about Amazon’s upcoming acquisition of Whole Foods and hope it will improve grocery store shopping experience, according to a recent general consumer survey from ChargeItSpot.

The majority of respondents62%, reported Are more will probably shop at Whole Foods after Amazon acquisition, and 84% feel positive about the merger. It’s a testament to Amazon’s brand and shows how the merger could give Whole Foods a much-needed boost as the company grapples with declining sales and growing competition in the organic food sector food space.

  • Consumers are the most important excited By possibility cashierless checkout at Whole Foods, With 31% of all respondents expressing interestBuyers are probably hoping for ANDfast, hassle-free shopping, but that may be hard to offer as Amazon’s Go technology has experienced delays and a former Amazon executive suggested Go might not fits well fullythe size of grocery stores. Even if this is not done via Go technology, buyers clearly expect Amazon to provide a seamless checkout experience, something he is known foronline.

  • Buyer Also I hope Amazon lowers the notoriously high prices at Whole Foods,30% of respondents looked for cheaper options. Aggressive prices was centrally in relation toAmazon’s Growth and Consumers now expect this to spill over into Whole Foods. The company you can find ways to reduce prices by optimizing your grocery store’s supply chain. What’s more, if we actually introduce a cashierless checkout — whether through Go technology, self-service terminals or other means, Amazon could free Whole Foods from high labor costs that plague the food segmentSuch savings can be passed on to consumers in the form of more attractive prices.

But only 10% of respondents want Amazon to use Whole Foods for grocery delivery. That could be a problem for Amazon, since its biggest opportunity in the grocery business is likely to be online delivery — brick and mortar There are many very established players in the food market, and Whole Foods is just one has 1% of that market. Many speculated that Amazon would add Whole Foods offer for AmazonFresh grocery delivery serviceand we potentially deliver from a Whole Foods location. If Amazon could tap Whole Foods to boost its AmazonFresh service, potentially dominating the emerging online grocery marketwhich is forecast hit $100 billion in 2025. To achieve this, however,The company will be needs to aggressively promote its online grocery offerings to generate more interest among consumers.

Ship-from-store — a fulfillment process in which retailers use inventory from their store to fulfill orders — can help brick-and-mortar stores evolve and avoid stagnation. This method is a necessary strategy for traditional retailers, as it can help them survive the digital revolution and remain competitive with e-commerce giants like Amazon.

BI Intelligence, Business Insider’s leading research service, has produced a detailed store shipping report that:

  • Explains how traditional retailers can leverage their physical space to support distribution through e-commerce channels.

  • Describes the steps retailers must take to implement a successful ship from store model.

  • It discusses the characteristics that make a retailer well-prepared to transform its stores into distribution centers.

  • It provides insight into how the direct-to-store shipping model can help grow the retail industry as a whole.

To receive the full report, subscribe Full access go to BI Intelligence and get instant access to this report and over 250 other expertly researched reports. As an added bonus, you’ll also get access to all future reports and daily newsletters to ensure you stay ahead of the competition and benefit personally and professionally. >> Learn more now

The full report can also be purchased and downloaded from our research store.

More from Business Insider