While this is all great opportunity, selling the space on the sides of Buses, bags, boxes etc. is old hat. What you have to watch out for is consumer burnout and too much trash. Not everyone wants to get a "NASCAR WRAPPED" box of goodies....
Tony, I'm checking with the various health departments in the greater Houston market. You have the county and each little incorporated city within the county (Harris) all have a health department that require not only the cold temps but for prepared hot foods, they must maintain above 146 degrees F. Now throw all of that into the mix and let's say I'm delivering from a Kroger store and the delivery range is like 5 miles, Logistically I really need to have a minimum of 5 stops to break even, and the time involved is going to be about 15 minutes per stop by the time I get back, so the last stop is going to be in my truck/car for 75 minutes ... how does that affect the temperatures?
Kroger just did away with their seniors discount program, and yet they want to expand and increase their business. One has to look at the overall actions of a company, the direction(s) that it takes and its actions in conjunction with its words. The failure for Uber to have frozen, mid and air-conditioned delivery vehicles is a real puzzle, as to why they would risk the shutdown by the various health departments that oversee the many location of their stores ... how ya gonna get by that one, I don't really know. Oh add one more: if you add "hot prepared food" to the mix, how will they keep it at 146 degrees F?
Why would I want to go to a store (endless aisle) only to find that I have to order it online? It's a big waste of my time. Walmart just doesn't get it, but they are trying to position the "caboose" (physical store) somewhere on the train to continue making use of it. They will soon learn that they will be like FedEX and UPS watching the train of DHL trucks whizzing by. (DHL ultimately bailed, but it's doubtful that Amazon will be another DHL).
Once again we have the patient diagnosing the illness, like the child lost in the forest who sees trees in every direction. The problem is that we did build more ground than we had demand for, however the "forest problem" is that while we built Cadillac facilities we failed to staff them with competent personnel. Who wants to walk into the "Cadillac" dealership and not be recognized, greeted or worse yet be forced to beg for help from someone being paid minimum wage texting on their smartphone while ignoring paying customers? If you have ever shopped at a Target store, there is never anyone to ask a question of nor anyone to help you. Top that off with the management's intent of political posturing and it has led to a multi-billion write-down of their value. You have to give me a reason to shop in you store rather than on Amazon -- hello!
Phil you nailed it. Remember in the Grocery industry about 6-7 years back. The "Gurus" were riding high by cutting 30% of the SKUs in stores and profits soared only to fall from the sky in a matter of months just after they rose!
This is "old hat," and you'd think that a smart merchandiser would have learned from the grocery industry back in the 2010-2011 years when there was a rash of grocery stores cutting SKUs and watching their profits go up and then down at the same rate.
Consumers do not come to a vendor (store) just to buy only the fastest moving and most popular items only. They come for the ambiance, the atmosphere and the convenience of getting it all under one roof/trip. What was learned 6-7 years ago was that you can't run a business by the numbers and the spreadsheets, you have to satisfy the customer and the customer comes to the retailer for the "whole" experience, not just the items that will make the seller's biggest profits.
A wounded albatross, bleeding in the water is a sure attraction for the sharks. Somehow an ancient behemoth is kind of like the "Pacific Princess" (Love Boat) as a glorious ship in her hay days, but now headed for the scrap yard. It never changed with the times, did not move online and has been swamped by the likes of Amazon. So if they do find a buyer, what will the buyer do with it? The same money would give greater returns with a new concept, so as with the "Pacific Princess" the money to refurbish could build a newer, more modern "ship."
Shrewd marketing and the PR impressions and good will generated are immeasurable. While partially hype, they will probably hire even more as Amazon is to the digital camera as Kodak was to photo paper.
Considering Moore’s Law, J.C. Penney can neither change nor convert stores fast enough to keep up with the changes in the buyer's expectations and demands. Walmart and now Kroger are offering online ordering and local store pickup. Where does J.C. Penney fit into that picture? How do they compete with Amazon, especially as Amazon perfects the same-day delivery service?
The "hard box" retailers are facing a behemoth much like Kodak faced. In 1998, Kodak had 170,000 employees and sold 85 percent of all photo paper worldwide. Within just a few years, their business model disappeared and they filed for bankruptcy. What happened to Kodak will happen in many industries in the next 10 years -- and most people don't see it coming. Did you think in 1998 that three years later you would never take pictures on paper film again? Digital cameras were invented in 1975. Will the cavernous retails stores of Kmart, Walmart, J.C. Penney, Macy's, Dillard's and the like become ghost towns to a computer screen or smartphone/tablet? Are there any retailers (Kodaks) making the announcement like Amazon's looking for 100,000 new employees? Just think about it for a while. The shopping mall won't be in existence when we hold the next presidential election!