Loss Prevention Research Council Weekly Series - Episode 47 - Popularity of Amazon Go and Future of Grocery
With Dr. Read Hayes, Tony D'Onofrio, Tom Meehan
From Supermarket News, nearly 60% of USA adults would like to see an Amazon Go in their area. Only 28% said they have gone to an Amazon Go Store, and 20% have never heard of the store. Reminder this is the store with walk out technology. You walk in, pick up what you want and walk out. Your Amazon account is charged. Two Dozen open Amazon planning to open 3,000 of these. 54% who visited an Amazon Go store described the experience as excellent. Another 35% rated it as good. Men prefer concept move than women 54% to 46%. 59% see these Amazon Go Stores as a threat to traditional Walmart and Kroger stores.
From NRF, released Annual Retail Forecast projecting USA sales to grow a robust 6.5% to 8.2% this year, to more than $4.33 trillion. Early results show that retail sales in 2020 grew 6.7% to $4.06 trillion. The holiday season accounted for nearly 20% of overall sales.
From Statista, worldwide subscriptions to 5G will reach 600 million by end of this year with 500 million of these being in Asia. By 2026 there will be over 3.3 billion subscriptions in the world, with over 2 billion in Asia. North America by 2026 will have 500 million. Europe about a billion. Lots of more work to do in USA on 5G.
From IHL Group, a tour of Europe retail sales. For Germany retail were up 3.9% but for December only up 1.5% because of lockdowns. UK > lockdowns really hurt, with January sales down 8%. France strong December sales, up 9.1%. Italy Dow 7.1% in 2020 down 3.8% in December.
Change in retail sales in USA by segment and by customer journey for 2020:
Food/Drug/Convenience/Mass Merch walk in to stores +18%, BOPIS +27%, Traditional E-Commerce + 9.1%
GMS walk ins -3.2%, BOPIS +36%, Traditional E-commerce +11%
Restaurants/Hospitality, walk in -7.5%, BOPIS +27.5%, Traditional E-commerce +9%
Grocery losses due to out of stocks during pandemic, same store sales -5.9%. Excluding 4 weeks surge grocery consumers reported experiencing out of stocks in 1 in 4.2 items they were looking for in 2020.
Growth installs in the next two years: Self-checkout +178%, consumer mobile self-checkout +300%, contactless payment +190%. Emerging technology spent in the next two years will be in: SD-WAN, microservices architecture, edge computing, store level 5G tech. RFID will see 200% growth next two years. Computer vision +400%
NEW Vaccines, NEW 5G Network, NEW COVID-19 Relief Bill! In this week’s episode, our co-hosts discuss these topics and more, including a recap of the LPRC IGNITE and Strategy@ events, the new Johnson & Johnson Vaccine, 5G Network’s Worldwide Expansion, and the new COVID-19 Relief Bill.
