Is Amazon unstoppable?
Derek gives his retail insight this week
Amazon reported its quarterly earnings in July and it had another stellar quarter reporting $52.9billon in sales and 2 billion in quarterly profits. Amazon is gaining a reputation for being unstoppable. Most large retailers are truly fearful of what Amazon is doing and what it can accomplish in the next number of years. Amazon could become a trillion-worth company in the next 12 months. However, Amazon still only controls 5% of all retail sales in the U.S. and only 1% Globally. It is projected by 2020 Amazon will represent 10% of all retail sales in the U.S. It is not just retailers but tech companies that see Amazon as their most dangerous competitor. It is envisaged by some key strategists that there will be more strategic partnerships between tech and retail companies. Microsoft, Google and Facebook immediately come to mind. Which global retailers and potentially grocers, could they link with or acquire? We have already heard about Microsoft and Walmart talks.
The next big trend is predicted to be personalised, on-demand hot food delivered directly to customers this would provide a total home meal replacement option. Grocers and food specialists will need to explore. Deliveroo and Eatsa are on the first step of this journey. Food is the next big thing and on-demand meals may lead the way. There is a significant opportunity for grocers, restaurant chains and food delivery companies in this space. Fast movers need to mobilise and execute before Amazon may eat their lunch.