Jetblack Could Change Walmart Shopper Stereotypes

Walmart’s tech incubator is out with its first experiment. The incubator, known as Store No. 8, just launched Jetblack, a concierge-style service for requesting stuff and getting it really quickly.

To shop with Jetblack, first you need an invite. Right now the service is limited to some customers in Manhattan and Brooklyn who are part of an eight-month pilot program restricted to buildings with a doorman, though that will soon expand and a waitlist is available now. The service is $50 a month — considerably less than some adjacent competitors, while considerably more than Amazon Prime — and promises same-day delivery.

Jetblack is focusing on “time-strapped urban parents” seeking “more efficient ways to shop for themselves and their families.” To request something, Jetblack members send a text message and will receive product recommendations sent back in text. Those recommendations are culled from Walmart and Jet.com but also from specialty retailers locally.

That means any product request is fair game and “sourcing a specific beauty cream from a member’s favorite local boutique, curating custom Easter baskets and delivering them once the kids are asleep and rushing beach essentials to a family on vacation” are all within the realm of Jetblack fulfillments.

“Consumers are looking for more efficient ways to shop for themselves and their families without having to compromise on product quality,” said Jetblack co-founder and CEO Jenny Fleiss, formerly of Rent the Runway.

“With Jetblack, we have created an entirely new concept that enables consumers to get exactly what they need through the convenience of text messaging and the freedom of a nearly unlimited product catalogue.”

Sources: eMarketer Retail  TechCrunch

Why It’s Hot

In retail and e-commerce, competition is hot around convenience. The pilot is interesting because (1) New Yorkers have opposed Walmart retail spaces in the past and (2) New Yorkers are already getting the best of same-day shipping/delivery in so many areas — so they expect it/are used to it — so they need it, but will they care about Walmart’s offering?

 

Walmart’s latest grocery war tactic

Walmart has filed a patent application for a system that would allow customers to view individual fresh items remotely before purchasing them.

The “Fresh Online Experience,” or FOE, would allow customers to order produce, meat and bakery items online using stock photos, but then have the opportunity to approve the actual items being purchased via image scans (either two- or three-dimensional) sent to them by Walmart store workers. Once an item is approved by the customer, an “edible watermark” could be applied to the item before it was packaged for pickup or delivery to verify that it was the item the shopper had selected.

Walmart Perishables

The system could also be automated to reduce the involvement of store personnel, according to the filing.

The patent application is one of several that Walmart has filed related to e-commerce. Last year, the company filed an application for a patent on a blimp-style drone for delivery, and another for a mini-store build into consumers’ homes that could be stocked from outside by Walmart delivery workers and accessed by shoppers inside the home.

All this is part of Walmart’s fight for grocery dominance; grocery already representing over half of Walmart’s revenue. Outside of patents, in December 2017 Walmart unveiled a meal kit option and a partnership with Buzzfeed that will integrate Buzzfeed recipes with Walmart groceries.

Source: Supermarket News

Why It’s Hot
With online grocery sales predicted to grow to $100 billion by 2025, it’s fascinating to watch how players big and small try to get their share.

Google’s Express Service Lets Shoppers Place Orders From Costco Without Membership

Stealing your family and friend’s membership cards is now no longer the only way to shop at Costco without a membership. The members-only wholesale retailer has recently partnered with Google’s shopping service, Google Express, to make some of its products available online in select locations where the Express service operates.

While there will be none of the delicious free samples Costco is known for, online shoppers can still purchase many of the retailer’s most popular items, including in-house brands like Kirkland. The service also features items from other major retailers, including Walmart and Target. Shoppers simply place their orders through the Google Express website, app, or Google Assistant-enabled devices like Google Home. Orders are then shipped directly to the customer’s home, and if they spend over a certain minimum, Google will waive the shipping fee entirely.

The only catch is that non-Costco members who make orders through Google Express must pay a $10 “access fee” to purchase Costco products, though this doesn’t apply for Costco members. The service is also only available in select locations, as shoppers in 10 states including Arizona, California, Colorado, Idaho, Montana, Nevada, South Carolina, Utah, and Wyoming cannot order without a Costco membership at all.

Source: PSFK

Retail brands are scrambling to provide better experiences for customers — via tech, via access, via personalization and more.

By partnering with major retail players like Costco, Walmart and Target, it places Google in a better position to challenge Amazon, which is currently in the process of expanding its footprint into physical retail spaces, namely through its acquisition of Whole Foods earlier this year.

Walmart Puts Its Eggs in a Time-Saving Basket: Grocery Pickup

In today’s installment of the the ongoing food/convenience/price/partnership saga…

Seeking an edge against Amazon, Walmart is pushing a service that delivers your order to your car. Customers never have to step inside the store.

A personal shopper is something you might expect at Bergdorf Goodman or a boutique on Madison Avenue.

Not at the Walmart on Route 42 in Turnersville, N.J.

But that’s where you will find Joann Joseph and a team of Walmart workers each day, filling up shopping carts with boxes of Honeycomb cereal, Cheez-Its and salted peanuts.

The customers select their groceries online, and then the shoppers pick the items off the store shelves and deliver them to people when they arrive in the parking lot. Customers never have to step inside the store.

“It’s about saving people time,” Ms. Joseph said as she helped load groceries into the back of a minivan one morning.

Walmart, which is one of the largest food retailers in the United States, sees grocery pickup as a way to marry its e-commerce business with its gigantic network of stores — a goal that has eluded many other retailers. The company started ramping up the service two years ago, and it is now available in about 1,000 of Walmart’s 4,699 stores across the country.

The initiative is the latest salvo in Walmart’s retail battle with Amazon, and the centerpiece of its strategy to gain the upper hand in the pursuit of consumers looking to streamline their food shopping.

Many retailers are focused on new ways to deliver groceries to people’s homes — particularly in big cities. Walmart is betting big on the millions of Americans in suburban and rural areas who drive everywhere. The company is trying to make ordering groceries online and then picking them up in your car as seamless as a fast-food drive-through.

Amid this heated competition, Walmart has been experimenting with different ways to get an edge. In a few cities, it works with Uber to deliver groceries to homes.

And last month, Walmart said it would begin testing a home-delivery service in which a worker loads the food into the refrigerator, even when no one is home. The customer can watch the process remotely from a home security camera and track when the delivery worker enters and leaves the house.

While these initiatives are limited to only a few states, the company’s grocery pickup is widespread. Walmart is betting that a big part of the country (“from Scranton to Sacramento,” one Walmart executive said) is more of a drive-through than delivery culture.

Source (and interesting longer article): NY Times

Why It’s Hot

This is business-model interesting! There is a lot going on in the grocery industry to deliver on customer demand for convenience. Walmart, as king of retail, needs to innovate while ensuring that they can maintain their fundamental model and prices. Fresh Direct, then UberEATs then Amazon + Whole Foods — create interesting pressures. Will Walmart stay ahead?

Have Amazon and Walmart met their match?

German discounter Aldi is betting billions it can win over American shoppers. How? By offering them way fewer choices than rival retailers.

Aldi

The unlikely proposition has worked nearly everywhere Aldi has set foot. The company is now one of the biggest retail groups in the world with more than 10,000 locations, businesses in 18 countries and annual revenues approaching €70/$83 billion.

The American grocery market, one of the largest and most competitive in the world, is on the cusp of dramatic change since Amazon.com Inc. acquired Whole Foods Market Inc. this summer and Google struck a partnership with Wal-Mart.

But the Germans have a plan, forged in the rubble of World War II. Aldi offers a deliberately pared-down selection – most stores stock between 1,300 and 1,600 items. By comparison, Wal-Mart’s Supercenters have in recent years carried around 120,000 items. On a basket of 30 typical household items, Aldi’s prices are on average almost 17% lower than Wal-Mart’s.

Aldi is gambling it is more in tune with the American tastes, rolling out small, nimble stores instead of sprawling warehouses and supermarkets that take longer to navigate.

Why It’s Hot
It’s another example of how major players are betting on simplicity, standardization and speed. And a reason to pause and consider the trade off between choice and control versus convenience and ease.

Google and Walmart Partner With Eye on Amazon

Google and Walmart are testing the notion that an enemy’s enemy is a friend.

The two companies said Google would start offering Walmart products to people who shop on Google Express, the company’s online shopping mall. It’s the first time the world’s biggest retailer has made its products available online in the United States outside of its own website.

The partnership, announced on Wednesday, is a testament to the mutual threat facing both companies from Amazon.com.

But working together does not ensure that they will be any more successful. For most consumers, Amazon remains the primary option for online shopping. No other retailer can match the size of Amazon’s inventory, the efficiency with which it moves shoppers from browsing to buying, or its many home delivery options.

The two companies said the partnership was less about how online shopping is done today, but where it is going in the future. They said that they foresaw Walmart customers reordering items they purchased in the past by speaking to Google Home, the company’s voice-controlled speaker and an answer to Amazon’s Echo. The eventual plan is for Walmart customers to also shop using the Google Assistant, the artificially intelligent software assistant found in smartphones running Google’s Android software.

Walmart customers can link their accounts to Google, allowing the technology giant to learn their past shopping behavior to better predict what they want in the future. Google said that because more than 20 percent of searches conducted on smartphones these days are done by voice, it expects voice-based shopping to be not far behind.

“We are trying to help customers shop in ways that they may have never imagined,” said Marc Lore, who is leading Walmart’s efforts to bolster its e-commerce business.

Google is a laggard in e-commerce. Since starting a shopping service in 2013, it has struggled to gather significant momentum. Initially, it offered free same-day delivery before scrapping it. It also tried delivery of groceries before abandoning that, too.

If Amazon is a department store with just about everything inside, then Google Express is a shopping mall populated by different retailers. There are more than 50 retailers on Google Express, including Target and Costco. Inside Google Express, a search for “toothpaste” will bring back options from about a dozen different retailers.

Google said it planned to offer free delivery — as long as shoppers met store purchase minimums — on products purchased on Google Express. Google had charged customers a $95 a year membership for free delivery. Amazon runs a similar program called Amazon Prime, offering free delivery for members who pay $99 a year.

Source: NY Times

Why it’s Hot

Amazon has been considerably powering forward of late — when it comes to partnerships, integrations, and expansions — and one was left wondering where the competition would net out. The future implications about data and voice integration are more interesting than the retail implications today, since Google is king at data integration.