This is why it is at once exciting for all consumers of groceries who will have the opportunity to witness the innovation, and also a huge threat for all current players in the space. Given the reaction being seen with publicly-traded grocery chains, investors have been quick to recognize the threat.
What does it mean for consumers?
- Amazon will be marking down prices where it can, or else consumers won't find the value they've been conditioned to demand.
- The in-store experience will likely be changing in ways not seen since the old general store days, when consumers pointed to items on high shelves and the clerk grabbed them.
- Look for more seamless integration of the online and brick-and-mortar experience. Think about how Amazon.com beckons with reminders of what we've previously purchased and hints at what we might like.
- Amazon's command of the data world means it should be more agile in knowing what consumers are buying and getting those items on store shelves. This means it should be more effective in anticipating trends, like those we've seen in recent years with organic, gluten-free or the explosion in popularity of things like coconut water.