Amazon / Whole Foods will be the fourth-largest grocer in the US, and will likely post growth rates no $10B+ retailer, sans Amazon, has registered. The Seattle firm will apply its operational chops and lower (zero) profit hurdle to the Whole Foods business model and bring prices (way) down. If you wish you could shop at Whole Foods more often, but it’s too expensive, your prayers have been answered. Whole Foods will become the grocery equivalent of a Mercedes for the price of a Toyota. Grocery has stuck their chin out (little innovation), and the entire sector is about to have its jaw shattered.
It’s a great piece. I disagree with him on this though:
Amazon will displace Apple as the top tech hardware innovator, with Alexa cementing itself as the gadget that defines the decade (post iPhone). Grocery / commerce via Alexa will create the utility that Alexa needs to [maintain its lead] over Google and Apple’s home / voice offerings as they try to play catch-up.
Alexa may well maintain its lead in the smart speaker market. It may even grow. Maybe HomePod will be a complete bust. But even if all of that happens, the smartphone will remain the dominant device in people’s lives. Something will eventually replace the phone, but smart speakers aren’t it.
Hardware just isn’t where Amazon is good.