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BUSINESS Saturday 1 July 2017
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What Amazon wants from Whole Foods: Data on shopping habits

By ANICK JESDANUN Brian Handly, CEO of the on product shelves, some- per over the internet. That more customers to those
AP Technology Writer mobile analytics firm Reveal thing Amazon is currently would free up store space aisles.
NEW YORK (AP) — Why is Mobile in Raleigh, North testing at a convenience for higher-profit items, such
Amazon spending nearly Carolina, said that while store in Seattle. as perishables and ready- BEYOND GROCERIES
$14 billion for Whole Foods Amazon doesn’t necessar- “They will break that data to-heat prepared meals. Amazon will be able to use
? One reason: People who grocery data to drive other
buy yoga mats and fitness purchases as well. Say you
trackers on Amazon might buy a lot of ingredients typi-
also like grapes, nuts and cally found in Asian reci-
other healthy items at the pes. Amazon might then
organic grocery chain. suggest a Thai or Japanese
In short, the deal stands to cookbook. It might also
net Amazon a wealth of recommend a new rice
data-driven insights into cooker.
how shoppers behave of- It works the other way, too.
fline — insights that are po- If you just watched a Mexi-
tentially very lucrative. can food show on Amazon
To be sure, there are plen- video, Amazon might point
ty of other benefits to the you to deals on avocados
combination. Amazon will and perhaps offer subscrip-
derive steady revenue tions for regular deliveries of
from more than 460 Whole tortillas and canned beans.
Foods stores; it can also in- Or it might automate a gro-
troduce robots and other cery shopping list based on
automation technologies a chosen recipe on your
to cut costs and improve Kindle e-reader.
the bottom line. But ulti- Just bought some camping
mately, Amazon wants to equipment? Amazon might
sell even more goods and People walk past an Amazon Go store, currently open only to Amazon employees, in Seattle. offer granola bars and oth-
Amazon Go shops are convenience stores that don’t use cashiers or checkout lines, but use
services to both online and a tracking system that of sensors, algorithms, and cameras to determine what a customer has er ready-to-eat meals for
offline shoppers — includ- bought. Amazon’s nearly $14 billion deal for Whole Foods isn’t just about getting more than 460 your hikes. Likewise, some-
ing stuff they might not grocery stores. Ultimately, Amazon wants to sell Amazon and Whole Foods shoppers alike even one who just bought a fit-
even realize they need. more goods and services, including stuff they might not even realize they need. ness tracker might be in the
Amazon has been quiet (AP Photo/Elaine Thompson) market for more produce.
on its specific plans so far,
but analysts are enthusias- ily have better artificial-in- down to build stories about Amazon’s challenge will be IMPLICATIONS FOR THE IN-
tic about the possibilities. telligence capabilities than their consumers,” Misso to “separate the profitable DUSTRY
“This will be a fun time for its rivals, it has scale in the said. businesses that can be bet- Walmart remains the lead-
Amazon,” said Ryne Misso number of shoppers and All this might feel creepy, ter done online and the ing retailer overall and has
of the Market Track retail variety of businesses it has. but it’s something Amazon profitable businesses that its own huge stake in gro-
research firm in Chicago. Whole Foods can help already does and does well can be better done at re- ceries; its retail revenue
“They are introducing a by giving Amazon a bet- online. Larry Ponemon, who tail,” said Larry Light, CEO is more than three times
whole new set of shopper ter understanding of what runs the Ponemon Institute of the brand consulting firm that of Amazon, even with
profiles that span grocery people do at physical retail privacy think tank, said he Arcature in Delray Beach, Whole Foods included. Yet
stores and durables.” stores, where 90 per cent of personally would find track- Florida. it’s on the defensive. To
worldwide retail spending ing of his self-described un- Amazon might find that beef up its online opera-
THE TRACKING still happens, according to healthy eating habits “very some items sell better at tions, Walmart has gone
Amazon is a pro at using eMarketer. creepy.” But he doesn’t ex- some locations than others. on a spending spree for
data on past shopping Amazon could learn pect any consumer back- It can stock just the most e-commerce companies
and browsing to prod you whether a particular cus- lash because Amazon and popular items at each lo- such as Jet, Bonobos, Mod-
to buy more. The home tomer tends to come once Whole Foods have both cation; other items are just Cloth and Moosejaw. Ana-
page, for instance, offers a month to stock up, or earned a high level of trust a click away for home de- lysts say these companies
quick access to recently make smaller and shorter and loyalty. livery. It’s an approach Am- should help Walmart get
viewed items and suggests visits more frequently. Wi- azon is already taking at its into the data game as well.
products “inspired by your Fi hotspots in stores might RECONFIGURING THE STORE eight physical bookstores. “The real challenge of
shopping trends.” Ama- collect unique signals ema- To make stores more profit- Handly said that even if Walmart is they recognize
zon sends emails about nating from smartphones able, Amazon could push Amazon can’t get rid of that technology can be
price cuts on items you’ve to figure out which aisles customers to order lower- every lower-profit item on bought and technical ex-
searched for but haven’t customers spend the most profit bulk items such as shelves, it can use data pertise can be bought,”
bought — yet. time in. Same with sensors detergent and toilet pa- to figure out ways to drive Light said.q

Nike to start selling sneakers through online giant Amazon

NEW YORK (AP) — Nike said Nike goods on Amazon, ing and accessories will be Mark Parker, in a confer- na and Europe, and Nike is
it will sell some of its sneak- but they are sold by third- available at first. But Nike ence call late Thursday. making its sneaker-selling
ers through e-commerce party sellers. Nike said the may sell more products Earlier this month, Nike said apps available in more
giant Amazon, part of a new partnership with Ama- on the platform if the test it would slash 1,400 jobs in parts of the world. In ad-
plan to make its swoosh- zon will help it better con- is successful. “We’re in the a restructuring aimed at dition to the Amazon deal,
branded products avail- trol its brand’s presentation early stages, but we really selling more shoes directly Nike also partnered with
able in more places online. on the site. Only a small look forward to evaluating online. It already has deals Instagram to make it easier
Shoppers can already find selection of shoes, cloth- the results,” said Nike CEO with Amazon’s rivals in Chi- for users to buy sneakers.q