Retail-Tech Partnerships Gain Steam: Should Amazon Worry?
Zacks Investment Research | Apr 03, 2019 11:04PM ET
Amazon (NASDAQ:AMZN) is going all out to bolster its presence in the grocery retail market. The company’s endeavors are supported by its distribution strength, the acquisition of Whole Foods and the establishment of its cashier-less store, Amazon Go.
Further, its strengthening grocery pickup and delivery services along with availability of Prime Savings at all Whole Foods Stores and Whole Foods Market (NASDAQ:WFM) 365 stores nationwide is a key catalyst for the company.
However, Amazon recently slashed prices at Whole Foods that shows the cutthroat competition this Zacks Rank #2 (Buy) company is facing from big retailers like Walmart (NYSE:WMT) , Target (NYSE:TGT) and Kroger (NYSE:KR) to name a few.
These retailers are flexing their muscles against Amazon with support from tech giants like Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) . Further, they are ramping up their initiatives to strengthen their grocery services.
Walmart-Google Partnership Poses a Challenge for Amazon
Like Amazon, which offers the comfort of grocery shopping with voice commands using its Alexa, Walmart has introduced Walmart Voice Order that allows customers to place their grocery orders just by saying “Hey Google, talk to Walmart” using Google Assistant.
With the availability of Google’s voice assistant on several devices including Android phones, iPhones, smartwatches and Google Home Hub to name a few, Walmart’s customer base is likely to increase. Users will be able to do grocery shopping from anywhere.
Additionally, Walmart, which has a Zacks Rank #3 (Hold), also enables customers to shop for products listed on Google Express through voice commands.
Target, Kroger Also in the Fray
Another retail giant, Target partnered with Google to allow its customers enjoy voice shopping on Google Express in the United States. Further, there is a possibility of integration of Target’s REDcard, a payment card, into Google’s shopping platform. This will help the Zacks Rank #2 stock to deliver an enhanced shopping experience. You can see Zacks Investment Research
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