In an era of Amazon’s “inbound” model- which is often referred to as the “Sprint,” “AmazonFresh” or “Fresh”- what is driving the rise of these retail chains?
While a lot has been written about the massive surge in online shopping, many have gone as far as to argue that Amazon is “already bigger than Walmart” (despite their vastly different demographics). But, as the new book The Death of a Retail Nation: How the Low-Cost, High-Volume Revolution Is Hiding Behind the Brand Power of Amazon and Other Giant Retailers shows, this may not be true:
“Wal-Mart, Target, Sears and Kroger combined, are more valuable than Amazon’s combined value. Kroger would rank second only to Target. The three largest retailers, plus Kroger, together make for an average value of $4.50. On average, that’s higher than Amazon’s $3.96.”
The Death of a Retail Nation: How the Low-Cost, Fast-Volume Revolution is Hiding Behind the Brand Power of Amazon and Other Giant Retailers offers several insights into how the giant retailers are getting away with their incredible profits while cutting jobs and wages across all the country.
Amazon may have the largest market cap. And yet it has been unable to replicate the high growth of Google and other internet giants. Instead, they continue to rely on their high margin retail model to generate profit. They have also been trying to build a “killer app” which can generate a massive amount of returns on investment (ROI) within their retail outlets. In fact, Amazon has been doing a lot of research into this aspect. At any given moment, some 25-30% of Amazon’s sales occur through the retailer’s “Fresh” program. This gives Amazon the ability to provide a high level of customer service and loyalty with very little cost to its competitors.
There are three things which Amazon has done well which is driving the increase in Amazon profits:
1) They have continued to invest heavily in their warehouse network, which is one of the best in the entire industry. They also expanded into the US from the UK and Asia. At the same time, they invested heavily into their retail store infrastructure. “While these businesses aren’t likely to be profitable, they have helped Amazon create a model that allows it to compete directly with big-box retailers such as Walmart and Target.”
2) They continue to innovate. While Amazon has been using
carpentry business near me sharpening service, woodworking business for sale wisconsin, woodworking business for sale wisconsin car show, woodworking business for sale wisconsin dells, carpentry business near me now