"For years, Amazon was cast as Walmart's great disruptor. Now, it's borrowing from the retail giant it once sought to upend. The company is rolling out Walmart-inspired ideas, including " Supercenter" warehouses, a new distribution layer known internally as the "1DC" network, and microfulfillment centers within Whole Foods stores, according to internal documents obtained by Business Insider. The shift reflects a hard lesson: mastery of e-commerce does not translate into dominance in groceries, particularly perishable items that drive frequent shopping."
"Nearly a decade after paying $13.7 billion for Whole Foods, Amazon still trails Walmart in everyday grocery shopping, and is now reshaping its retail infrastructure to compete head-on with Walmart's Supercenter model. Earlier this month, plans emerged for a roughly 225,000-square-foot Amazon megastore near Chicago. Bigger than a typical Walmart Supercenter, the new concept is designed to let customers buy "fresh groceries, household essentials, and general merchandise - all in one trip," according to Amazon."
Amazon is adopting Walmart-inspired retail strategies, including "Supercenter" warehouses, a "1DC" distribution layer, and microfulfillment centers inside Whole Foods. The changes target grocery weaknesses, especially perishables and frequent-shopping items where e-commerce strength did not produce dominance. Amazon paid $13.7 billion for Whole Foods nearly a decade ago but still trails Walmart in everyday grocery shopping. Walmart's dense network reaches roughly 90% of Americans within 10 miles and supports low-cost, frequent distribution of fresh food and staples. Numerator estimates Walmart holds about 21% of the US grocery market while Amazon and Whole Foods each hold roughly 1.6%. Amazon plans include a roughly 225,000-square-foot megastore near Chicago selling groceries, household essentials, and general merchandise in one trip.
Read at Business Insider
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