Amazon Quietly Begun Grocery Chain Pandemic

Reblogged from：

https://newonnetflix.org/amazon-quietly-began-grocery-chain-pandemic

If you've been unable to figure out how Whole Foods' sales fell during the holiday season, you're not alone. Retailers including Target, Walmart, and Amazon all face similar issues. While they all depend on customers to walk into their stores and purchase items, the trend toward virtual shopping is threatening the very business model of grocery chains. The disjointed strategy is another cause for concern. Whole Foods' sales dropped in the first quarter, but they may rebound as city dwellers near Whole Foods stores return to the area. Office workers may return to grab prepared meals from Whole Foods stores.

Trader Joe's United Organizing Committee

Employees at the Trader Joe's store in Hadley, Massachusetts, are hoping to form the first grocery-chain union. The new group, Trader Joe's United, has collected enough signatures for an election. However, it is not affiliated with any established labor union. Despite this, the company's CEO Dan Bane has denounced the organization, claiming it is "unlawful and unworkable."

During the pandemic, the California-based grocery chain discouraged unionization efforts. In response, one of its western Massachusetts stores filed for a union election. However, the California-based company has been steadfast in its refusal to delay the election, stating that it would support a union vote only if at least 30% of its crew wished to be represented by a union. This number is required by labor law. The company has over 500 stores and more than 10,000 employees.

The company is a popular chain in the US, but its reputation as a good place to work has been challenged by recent events. While many employees at a Trader Joe's store in New York City have praised their working conditions, the company has also faced a lawsuit filed by Hadley Trader Joe's workers for unfair labor practices. The employees claim that their union pins have led to discrimination and retaliation.

The first union election was held in the state of Massachusetts on June 7, 2022. The organizers said the decision to remove pro-union pins was made by management without notifying the employees about the policy. Four other employees said the company did not inform them about the policy. A second vote in a different warehouse is planned for June, 2022. A similar decision is expected to be made in the state of Massachusetts.

The organization's first phase of vaccinations focuses on older adults, as this population is more vulnerable to the disease. A focus on this age group is the most ethical and effective approach to reducing deaths. Since 80% of the deaths in the country are caused by older adults, this initiative is particularly beneficial. Nevertheless, despite the initial optimism, the pandemic continues to march through grocery stores.

Walmart

Amazon has quietly entered the world of traditional grocery stores with its new venture, Fresh. This concept has been quietly emerging in areas like Pasadena, which has been hit hard by the business climate and the grocery chain pandemic. In addition to Fresh, the e-retailer also plans to open two more locations in the Chicago area that feature cashierless checkout. However, it's not clear when those stores will open.

While the online grocery sector continues to boom, traditional grocers are buckling under Amazon's threat. The company has two stores in the same neighborhood, with a third in California. Amazon Fresh positions itself as a low-priced alternative to traditional grocers. The company's physical presence is a temporary solution to the grocery chain pandemic, and the company is aiming to compete with traditional grocers with a variety of products.

The company's online grocery ordering service has grown rapidly. As of March 2021, deliveries from Whole Foods and Amazon Fresh have increased 400% year-over-year. In the meantime, physical store sales have fallen. And the emergence of Amazon Fresh and Whole Foods Fresh stores may bolster sales in the future. However, these two companies' retail strategies aren't going to be successful without their physical stores.

While many retail giants have been building market share over the years, Walmart's growth has been the fastest. The retail giants have also expanded their international reach, with Walmart and Home Depot seeing their net sales increase by seven percent. Meanwhile, Amazon is on pace to become the largest private package delivery service in the U.S. by early 2019. The company has also begun to institute late delivery fees, as well as increased the completion threshold from seventy percent to 98 percent.

Target

Amazon has quietly begun a grocery chain blitz that is targeting an increasingly wide range of markets. The company is actively seeking vacant boxes ranging from ten to thirty thousand square feet that can be converted into a grocery store. The Pasadena area is one such market. The population is primarily comprised of middle-class, well-educated families, and the company has identified this demographic as a good fit.

While online grocery sales have grown, Amazon's physical stores are suffering. Most customers are now buying groceries from multiple sources. The physical presence of Amazon is an attempt to compete with traditional grocers but the move is only temporary. Many observers believe this is a mistake. While Amazon's physical presence will only serve a temporary purpose, they will have to adapt quickly to stay in business. However, it is important to remember that a large portion of consumers already shop at multiple channels, including online and in stores.

While traditional retailers continue to expand their footprints, Amazon still trails them in terms of number of stores. Aldi is planning to open another 100 stores this year, and Whole Foods has about 500 locations. Meanwhile, Amazon is also moving ahead with plans for expansion on the East Coast. If the plans pan out, the company may be on the road to a grocery chain pandemic. Amazon will continue to focus on delivering its products directly to customers, and will likely continue to add store locations in cities that aren't yet convenient for them.

Though Amazon has only a fraction of the $900 billion grocery market in the U.S., it has made a name for itself by offering food online. Its expansion into physical retail environments shows how it is targeting both lower-income and higher-income consumers. Last year, it announced that it had acquired Whole Foods and would be selling Whole Foods' 365 line at its Amazon Fresh locations. The company's grocery stores outperformed both Walmart and Albertson by about 20 percent, and were on par with Aldi.

Amazon

With just a tiny slice of the $900 billion U.S. grocery market, Amazon quietly began grocery chain pandemic. With its Fresh store that opened just a year ago in California, the company has already made some progress. Its strategy is to build a stronger relationship with Prime members and appeal to a broad cross section of America. But if traditional grocery chains don't catch on soon, their future is not as rosy.

As the COVID-19 pandemic hit the United States in 2017, demand for online services skyrocketed and many companies quickly started offering these services. Those who had a physical store were able to pounce on the opportunity before lockdown policies were imposed. This allowed Amazon to launch its grocery delivery service, Amazon Fresh. Despite its recent success, Amazon's physical presence is not likely to last long. Rather, it will be a temporary solution to compete with traditional grocers.

While the physical store sales of Amazon have slowed as a result of the pandemic, its grocery orders have mushroomed. Amazon Fresh stockouts are correlated to larger trends in the grocery business. Customers are stockpiling toilet paper, hand sanitizer, paper towels, and soap. The most frequent shortages in Amazon Fresh stores are in perishable items, such as eggs, bagged produce, and prepared foods.

With the expansion of its food services and its delivery service, Amazon Fresh has doubled grocery delivery sales. The sales of its Whole Foods and Amazon Fresh services combined in March 2021 grew 400 percent compared to the previous year. The service allows customers to order food from Amazon's warehouses or Whole Foods stores. And the company is able to provide free two-hour delivery and pick-up of groceries.

Trader Joe's workers are also in the midst of organizing. Earlier this year, the CEO of the chain sent an anti-union letter to employees, promising to hold a union election if 30% of the workers voted in favor. In contrast, no store had requested a union election in the early stages of the pandemic. However, some western Massachusetts Trader Joe's employees sent a letter to the company's CEO, announcing their intentions to unionize. Workers explained that federal labor law requires them to unionize under federal labor laws, and Amazon's promise to be the largest private package delivery service in the U.S. by early 2019.