Amazon’s Just Walk Out tech makes “every other grocery store obsolete,” according to ex-Amazon executive Brittain Ladd.
Ladd described Amazon Fresh’s arrival onto the high street as the grocery sector’s “Pearl Harbour moment”.
The ecommerce giant has just opened a 35,000 square foot bricks-and-mortar location with the Just Walk Out tech capability in the US, something that Ladd believes the major retailers like Walmart would not have envisaged happening for several more years.
“What Amazon has done is made every grocery store in the US, and globally, obsolete,” Ladd said in a LinkedIn post.
Amazon’s cashierless tech significantly reduces the time spent for customers in the store and the speed at which they can shop.
It also saves the company millions of dollars in labour costs annually.
“The fact that Amazon created Just Walk Out technology is in all actuality, a massive embarrassment to Kroger, Albertsons, Wegmans, and every other major grocery retailer in the US. Amazon has only been in the grocery business since 2007,” Ladd added.
“By comparison, Kroger was founded in 1883, and Walmart has been selling groceries in its Supercenters since 1988. The youngest player in the game has also turned out to be the most innovative.”
Amazon’s foray into the grocery sector doesn’t show much sign of slowing down, with a recent report by Business Insider claiming that it was planning to open over 200 more stores in the UK.
Ladd also commented on Amazon’s last mile division which it is funnelling a huge amount of money into.
“Amazon’s logistics strategy has incorrectly been described as being similar to the tentacles of an octopus. It is in fact more similar to the web of a Darwin bark spider that makes the largest spider web in the world.”
“The beauty of webs is that they allow a spider to catch prey without having to expend energy and run it down. Amazon is creating a nationwide ecosystem that in fact will operate similar to a spider web. Amazon’s strategy isn’t to run down the competition, it’s to attract more prey – customers.”
Ladd also said that he felt that Amazon should ditch Whole Foods, which it acquired in 2017, as he believes it has no value to the company.