Amazon Is Banking on Brick-and-Mortar Stores

Amazon Is Banking on Brick-and-Mortar Stores

Amazon is expanding its physical retail footprint.

After putting other retailers out of business, it is pursuing a brick-and-mortar strategy in the grocery business, a sector known for razor-thin profit margins. It has also opened several physical bookstores at a time when Barnes & Noble, unable to compete with the digital retail giant, has been closing its own. The common element to an increasingly diversified portfolio of businesses is the Prime membership. In making its products and services ubiquitous, Amazon is becoming more of a lifestyle than just a retailer.


Video Spotlight: Amazon’s New, Full-Size Grocery Store


This post is based on the CNBC article, Amazon Just Opened a Cashierless Supermarket – Here Are All the Ways It’s Trying to Upend the Grocery Industry, by A. Palmer, February 25, 2020, and the YouTube video, Here’s A Look Inside Amazon’s First Full-Size Grocery Storeby CNBC Television, February 25, 2020. Image source: SEASTOCK/Shutterstock.

Discussion Questions:

1. Why is Amazon increasing the number of its physical stores in areas where others have failed?

Guidance: Amazon has put a large number of retailers out of business. With enormous financial resources and weak competition, it can try different growth Continue reading

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No-Inventory Stores

No-Inventory Stores

February 29, 2020

Showrooms have existed for many years.  Now, however, more stores are turning to the concept of a showroom that has very little inventory—especially clothing stores.

The lack of inventory generates several advantages associated with less inventory.  In many cases, the stores are not reducing the size of the store, they are replacing the inventory with experiences.  The inventory can be replaced by personal stylists, cafes, a streamlined return desk, or office space.

The Canada Goose store in Toronto has taken the experience approach to new levels with a daily snowstorm.  Customers begin “The Journey” by walking through “The Crevasse” that simulates walking on cracking ice.  Another stop on “The Journey” is the “Gear Room.”  This room resembles a Norway seed vault.  It is where the customers select Canada Goose coats and accessories to try out in “The Cold” room.  In this room, arctic conditions are simulated, with the temperature set at 10 degrees Fahrenheit.

If “The Journey” has gone according to plan, customers will leave the store empty-handed.  But, they will be anticipating the delivery of their new Canada Goose gear.


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Chicken for Breakfast at McDonald’s

Chicken for Breakfast at McDonald’s

February 24, 2020

McDonald’s wants to win breakfast.  The restaurant chain has struggled in the Chicken Sandwich War, as Chick-fil-A and Popeyes have taken market share.  McDonald’s hopes its new chicken sandwich will help, but what will really put them over the top, they believe, is chicken on the breakfast menu.

For a limited time, they’ll offer the McChicken Biscuit, and the Chicken McGriddle, for breakfast across the country.  Both breakfast sandwiches are already standard menu items in the south for McDonald’s, and have been very successful.  After the limited time, franchisees can continue offering these menu items if desired.

Part of the battle for quick service breakfast supremacy will focus on new entrants.  Wendy’s is again trying to offer breakfast.  One of its offerings is a Honey Butter Chicken Biscuit.  Chick-fil-A already offers a Chick-fil-A Chicken Biscuit


Video Spotlight: McDonald’s adds new chicken sandwiches to morning menu – Jack Brewer joins Yahoo Finance


This post is based on the CNN article, McDonald’s Is Fighting the Breakfast War with Chicken Sandwiches, by Danielle Wiener-Bronner, January 28, 2020, and the YouTube video, McDonald’s adds new chicken sandwiches to morning menu – Jack Brewer joins Yahoo Finance Continue reading

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