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It is all about networking
Amazon’s latest move into bricks-and-mortar retailing is explained in this good article in The Atlantic. It notes that last week’s news that it is to buy Whole Foods for some $14bn, will give Amazon both a stronger foothold in food, but also urban real estate, which it can then use for its fast-delivery options. The article also notes that while food sales have terrible margins, Amazon’s understanding of the “human sloth” – the laziness that means we now order everything from the comfort of our sofas – will keep it ahead of the game.
Meanwhile, rival Alibaba is trying to woo US shippers to its site, to sell to Chinese shoppers. But it could be a tough market to crack.
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Alex Lennane
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