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Page 14 DECEMBER 2017 | RETAILERS FORUM MAGAZINE

For Late-Breaking Industry News Visit: www.retailersforum.com

If It Affects Retailing We Report On It!

Amazon Creates Even More Competition

THERE are so many retailers and wholesalers that I have spoken to over the years who are anxious

to get their products on the Amazon marketplace. It is actually not so difficult to get your items on the

website, it is much harder to rank high and sell the merchandise.

AND in the continuing saga of Amazon ruling the world, they are now cutting prices of products from

third party sellers on their website, moving even further beyond their typical method of discounting

items that Amazon sells directly. The retailer wants to compete aggressively to win sales and draw

shoppers away from low-priced competitors like Wal-Mart and this move allows Amazon to sell the

products at lower prices yet still give full selling price to the sellers.

SOUNDS like an OK idea if you are supplying the goods on Amazon, but in reality this is a real killer if

you have a retail store or your own online store and want to be competitive. Even some of the suppliers

to Amazon are wary about this new discounting because many say that it devalues their merchandise

and has their own outlets competing against themselves.

THE answer? Simple. Amazon says that suppliers can opt out if they don't like it. But we all know

that with Amazon driving such a large percentage of sales to its sellers that is unlikely.

PERHAPS the next discussion will be that I heard that Amazon is now OK with sellers from China

hawking their often way-underpriced goods on the platform, just like eBay allows. Another way that

American businesses will suffer at the hands of this dominant giant. Welcome to the new world of

retailing.

Kroger To Sell Clothes...Sure, It's Crazy World

BECAUSE running a retail business is tougher than ever, Krogers, which is a supermarket chain has

announced that it will start selling apparel alongside breakfast cereals at their stores!

THE nation's largest supermarket chain said that they will launch their own fashion brand (because

supermarkets are on the cutting edge of fashion) in over 300 locations across the country. The casual

collection will span from children to teens to adults.

THE move comes as traditional grocery chains have faced increased competition from all fronts

from discounters like Walmart to high end grocers. And, of course, Amazon's purchase of Whole Foods

Markets has really raised the stakes in the traditional grocery market. So, Kroger's answer is to sell

clothing next to the coffee beans and paper towels.

THIS is a prime example of the disruption of the retailing industry as we know it. Much of this chaos

has been sparked by the degredation of our industry by companies like Amazon that have been gobbling

up segments and because of their sheer size has made it increasingly difficult for independent retailers

to operate. When a giant like Krogers branches off like this it is sure to raise concerns for us all.

Retailing Tidbits

HOW would you like a Walmart worker going into your home while you are out? Well, Walmart is

testing a new service where online grocery orders will be delivered to your house and the items put

away in your fridge - whether you are home or not. The smart phone device allows you to monitor all

movement and the driver is given a one-time passcode to open your front door. The program is in testing

now and results have not been shared. Personally, this one is a bit beyond what I would be comfortable

with, but the results remain to be seen. Stay tuned.

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