Amazon’s New Food-Store Rollout – what is their strategy? via @robinreport

There is a lack of clarity of details surrounding Amazon’s upcoming development of a food-store format that will be entirely distinct from its Whole Foods stores.

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WHY IT MATTERS: anything Amazon does is important because they innovate. That is they try things out until the model works. Grocery appears to be the ground where the profitable model has yet to identified. But the final goal is huge: volume. Grocery is all about weekly repetitive orders. If you solve this then you have effectively solved the delivery problem. Amazon has been trying to crack this nut for more than 10 years with launch of Amazon Fresh. And my attitude remains: if you deliver grocery at scale without loosing money then effectively all other delivery have a marginal cost. Now it looks like Amazon is thinking that in order to win the repetitive products (like peanut butter and canned soup) you need physical stores for fresh products, prepared meals and local spokes for last mile delivery…

Farid Mheir