Report: Amazon poses threat to brick-and-mortar retailers
NEW YORK — A story on the Wall Street Journal’s MarketWatch, published Monday, identified Amazon.com as the latest value-oriented retailer to pose challenges to more traditional brick-and-mortar retailers.
In a report titled “More retailers struggling to navigate Amazon’s surging current,” William Blair & Co. analyst Mark Miller compared merchandise overlap and relative pricing of 24 retailers against Amazon. Miller found that Amazon’s prices represented an 11% discount to the competition, on average.
And it’s not all Amazon’s merchandise, necessarily. Nearly half of the items were available via Amazon.com from a third-party seller. Third-party sellers represent more than 60% of the online retailer’s offerings, the report noted.
Such specialty retailers as Best Buy and Dick’s Sporting Goods stand the most to lose; Walmart and other mass merchandisers are at less of a risk because of their perishable foods departments — a category that cannot easily be replicated online. Similarly, drug retailers face a below-average risk of share loss to Amazon — outside of prescriptions, many items sold at pharmacy satisfy an acute need, such as cough and cold relief, for example.
Target has a 45% product overlapping with an 11% price gap against Amazon, MarketWatch reported, citing the William Blair analysis. Walmart has a 28% assortment overlapping with Amazon priced 5.4% lower on those identical items, the report added.
H. D. Smith announces support of Fairness in Medicare Bidding Act
SPRINGFIELD, Ill. — H. D. Smith on Monday announced its support for H.R. 1041, otherwise known as the Fairness in Medicare Bidding Act.
Introduced in March by Reps. Jason Altmire, D-Pa., and Glenn Thompson, R-Pa., the bill seeks to repeal the Medicare Durable Medical Equipment Prosthetics, Orthotics and Supplies competitive bidding program included in the Medicare Modernization Act of 2003 (MMA).
"We applaud the efforts of Reps. Altmire and Thompson in introducing this legislation that will help ensure marketplace competition, patient access and quality of care for home medical equipment suppliers and consumers," stated Ron Lanton, government affairs counsel for H. D. Smith. "H.R. 1041 provides a common sense solution to ensure an open and fair marketplace that can provide patients the healthcare options they need for their medical care and quality of life."
New store further cements branding with Walgreens
WHAT IT MEANS AND WHY IT’S IMPORTANT — Walk through Duane Reade’s new flagship store at 40 Wall St., and it is clear to see why this 22,000-sq.-ft. location is important.
(THE NEWS: Duane Reade’s new flagship is glimpse of drug store of the future. For the full story, click here.)
For starters, the co-branding “Powered by Walgreens Pharmacy Network” represents connectivity of the Duane Reade stores to Walgreens’ pharmacy universe. This connectively quitely has been taking place behind the scenes, but this new store marks the first time that Duane Reade has introduced the concept to its consumers.
Then there’s the food. Yes, in recent months, several pharmacy retailers have made a greater push into “fresh,” but this store completely redefines what it means to sell food in a drug store. There are in-store sushi chefs, a juice/smoothie bar and partnerships with local New York City gourmet retailers and such eateries as Zabars.
Another important element of the store is the innovative technology from the virtual assistant at the door to the magical makeover tool in beauty to the high-tech, mix-and-match Coke machine.
Even the beauty department has been beautified. In many stores, Duane Reade already has revamped its beauty department with its upscale Look Boutique, but this store has an expanded Look Boutique and beauty services, such as manicures and hair styling, typically not found in a drug chain.
This store is clearly a drug store of the future.
For more on Duane Reade’s newest store, click here for Drug Store News‘ exclusive video coverage featuring Walgreens’ Joe Magnacca. For photos of the store, click here to view Part 1, Part 2 and Part 3.