Amazon took another piece of the global economic pie last week purchasing struggling super markets Whole Foods for a whopping $13.4 billion dollars.
My managers in the supermarket are well aware of their potential, — that is to disrupt markets. They have become the global marketplace putting many retailers on the brink of bankruptcy. They purchased The Washington Post to put their mark in the news business reviving a dying media format.
Now they are looking to dominate supermarkets.
Supermarkets have a chance to save their marketshare or risk being gobbled up by Amazon by doing these three things:
- Interview your customers one on one. It costs hundreds of dollars to market and bring in people through the automatic doors. Now supermarket managers must hold meetings to speak to their customers. Ask them what they like, don’t like, ways to improve, and so on…Offer a $10 gift card of your supermarket, because you have the data to work with and preserve your supermarket and retain your customers.
- Anticipate what customers want to buy…before they do. Managers need to really observe their spending habits, Do they walk up the beer aisle first, or do they start with produce? What time of day do they shop? How much do they spend? What new products are they looking for. Supermarkets need to be ultra specific…because I can bet Amazon is.
- Build partnerships with delivery companies Shipt has partnered with Publix, and so has Instacart. Maybe offer volume discounts for those shoppers.
The world is not over just because Amazon is buying it…rather it is changing. And supermarkets must try new things and stay relevant or be purchased by Amazon.