A box from Amazon.com; Credit: Flickr/Aurelijus Valeiša
The hyper-competitive grocery market in LA is expecting a major new player in the coming days. Reuters reports Amazon.com will offer grocery delivery to your doorstep, including fresh organic produce, meat and dairy. AmazonFresh, as its grocery section is called, has been testing in its hometown of Seattle for the last five years. It’s expected to add LA, San Francisco and 20 other urban markets if all goes well.
The fear for other grocers, large and small, is that Amazon.com will treat its food business as a loss leader – just one more way to attract consumers buying more expensive wares such as electronics. Regardless, market watchers have seen many grocery businesses fail, both online and off.
If you’re a regular Amazon shopper, will you add milk and strawberries to your power blender order? If you’re not a regular on Amazon, could rock-bottom prices make you switch from your current market? Why is Amazon taking this step? What will Amazon do differently to try to ensure success?
Keith Anderson, Vice president of the Digital Advisory practice at RetailNet Group, a market.research firm for the global retail and consumer goods industry
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