retail news in context, analysis with attitude

CNBC reports on a new study by Telsey Advisory Group, which says that Amazon is “set to capture nearly 10 percent of total retail sales by 2020 … much of the growth will come from its investment in the grocery business following the acquisition of Whole Foods Market in 2017. Its share at the end of 2017 was 5.6 percent.”

Analyst Joseph Feldman writes, “We believe food and drug presents the largest multi-year growth opportunity for Amazon. The shift to online grocery is being driven by consumers' increasing comfort with buying almost anything online, along with greater product availability and improvement in the supply chain to offer faster delivery.

"The rollout of Prime Now grocery, a service that delivers products in one-hour and two-hours, should be a game changer.”


Bloomberg reports that “since the launch of an October pilot program to accept Amazon returns in some stores, traffic at participating Chicago Kohl’s stores has been about 8.5 percent higher than others, according to geolocation data analyzed by Gordon Haskett Research Advisors … About 56 percent of those who returned Amazon goods to a Kohl’s location were new Kohl’s shoppers -- or they hadn’t visited Kohl’s at least since July 1, according to the study. That’s higher than in other locations, where less than 43 percent of those visiting were considered new to the chain.”

Kohl’s has said that it is in conversations with Amazon about expanding the pilot.
KC's View: