This episode of Three Minute Insights features Terry Clear discussing Amazon’s decision to drop Amazon Go and Amazon Fresh to focus on Whole Foods. We examine the implications for Walmart suppliers and what they should monitor in this evolving grocery landscape.
Lainie: Welcome to Three Minute Insights, where we discuss issues of importance to retail suppliers. This week, our guest is Terry Clear from Ahan Walton. We’re talking about the recent news that Amazon is dropping its Amazon Go and Amazon Fresh grocery brands to focus more on Whole Foods.
Terry, how might this shift in Amazon’s grocery strategy impact the way Walmart suppliers think about retail geography and shopper reach going forward?
Terry: This is really just Amazon adjusting its grocery strategy. Amazon Fresh didn’t work out as intended, so they’re dropping it and moving on. It’s interesting to note that they plan to open a new location in the Chicago suburbs later this year.
For suppliers—large or small—the key thing is to stay on the shelf and keep your product content accurate on Walmart.com. Fulfill all your purchase orders while the two giants battle it out. This will be a fascinating fight to watch, but in the meantime, our job doesn’t change: keep Walmart in stock at the store level, make sure item files and product display pages are correct, and fulfill all orders. In short, enable Walmart to do everything it can to win this competition.
Are you a Walmart supplier in need of guidance? Get in touch!
Lainie: Given all these developments, what should suppliers be watching most closely when working with Walmart or monitoring this news? And do you think Walmart will put more emphasis on in-store sales, or continue focusing on growing its online grocery reach?
Terry: I think online grocery is where the future lies. Over the next few years, that percentage will continue to grow. Because of that, both Walmart and Amazon may make changes to their requests—like pack sizes.
We may start to see different packs for inventory destined for store shelves versus for fulfillment centers or dark stores. We don’t know exactly what those changes will look like yet, but suppliers need to be ready for them.
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