4 ms·

My theory is that the inability of US chains to figure out online ordering is really some anti-competitive agreement to force customers to go into the store bec

My theory is that the inability of US chains to figure out online ordering is really some anti-competitive agreement to force customers to go into the store because the chains live and die by high-margin impulse buys. Wholefoods just opened a brand new chain called '365' that has all sorts of sophisticated nonsense like a programmatic tea-bot and yet there is no online ordering. Even the made to order stuff is driven by an interface which could just be made publicly accessible and they'd be done but no, into the store you go.

Eridrus 10y ago
I don't think so. Supermarkets and e-commerce are entirely different competencies and I have no trouble believing that being good at one doesn't give you a tonne of advantage at the other. Putting some startup's tea-bot into a store is far easier than integrating that tea-bot into an online ordering system.
- RyanZAG 10y ago
  Most supermarkets in other countries seem to manage deliveries and online ordering pretty well. For example, all supermarkets in South Africa provide online ordering and delivery. Sometimes without even a delivery charge.
cududa 10y ago
I think you're severely overestimating the ability of supermarket chains.
caminante 10y ago
365's a downmarket brand (lower margin) focused on millenials and a "hip" shopping experience. WFM never wants to be a virtual distribution center for Instacart.
- e1g 10y ago
  FWIW WholeFoods recently invested significant sums (~$30M) into instacart and made them the official online distribution channel. So WFM sees some value in being a distribution center, if that means moving more of their goods.
  - caminante 10y ago
    Yes. WFM has an equity stake in Instacart and has benefited (income diversification + investment appreciation). That said, from what I'd read (and it's been a while), WFM's strategy with Instacart sounded like a way to steal market share and convert customers to shop IN their stores. If I recall, Instacart pickers were getting bonuses for (choosing) WFM stores, and WFM was offering food to pickers with no markup. I don't know if it'll work out. WFM's been under fire for it's pricing for a while. Maybe Instacart will drive incremental sales growth (as you're alluding to). I'm skeptical as it might cannibalize the value of their high-cost experience locations.
hkmurakami 10y ago
What about kickbacks for preferential shelf placement?
- martinald 10y ago
  In the UK this applies to online stores too, some items are 'promoted' etc. Think of it like sponsored listings.
deleted 10y ago
[deleted]
martinald 10y ago
Yes, it's pretty crazy. Tesco had this in the UK since 1996(!), with a CD-ROM ordering system that synced new products over dialup in batches. Now all (apart from Lidl and Aldi, I imagine their margins are too low) offer online shopping and have done for a long time. Really can't understand why the US stores don't do this and instead have allowed Instacart, which has little/no proper supply chain knowledge, to build a $3bn business in it's place. Very odd.

Eridrus 10y ago

I don't think so. Supermarkets and e-commerce are entirely different competencies and I have no trouble believing that being good at one doesn't give you a tonne of advantage at the other. Putting some startup's tea-bot into a store is far easier than integrating that tea-bot into an online ordering system.

RyanZAG 10y ago
Most supermarkets in other countries seem to manage deliveries and online ordering pretty well. For example, all supermarkets in South Africa provide online ordering and delivery. Sometimes without even a delivery charge.

cududa 10y ago

I think you're severely overestimating the ability of supermarket chains.

caminante 10y ago

365's a downmarket brand (lower margin) focused on millenials and a "hip" shopping experience. WFM never wants to be a virtual distribution center for Instacart.

e1g 10y ago
FWIW WholeFoods recently invested significant sums (~$30M) into instacart and made them the official online distribution channel. So WFM sees some value in being a distribution center, if that means moving more of their goods.
- caminante 10y ago
  Yes. WFM has an equity stake in Instacart and has benefited (income diversification + investment appreciation). That said, from what I'd read (and it's been a while), WFM's strategy with Instacart sounded like a way to steal market share and convert customers to shop IN their stores. If I recall, Instacart pickers were getting bonuses for (choosing) WFM stores, and WFM was offering food to pickers with no markup. I don't know if it'll work out. WFM's been under fire for it's pricing for a while. Maybe Instacart will drive incremental sales growth (as you're alluding to). I'm skeptical as it might cannibalize the value of their high-cost experience locations.

hkmurakami 10y ago

What about kickbacks for preferential shelf placement?

martinald 10y ago
In the UK this applies to online stores too, some items are 'promoted' etc. Think of it like sponsored listings.

deleted 10y ago

[deleted]

martinald 10y ago

Yes, it's pretty crazy. Tesco had this in the UK since 1996(!), with a CD-ROM ordering system that synced new products over dialup in batches. Now all (apart from Lidl and Aldi, I imagine their margins are too low) offer online shopping and have done for a long time. Really can't understand why the US stores don't do this and instead have allowed Instacart, which has little/no proper supply chain knowledge, to build a $3bn business in it's place. Very odd.