2021年5月4日 星期二

On Tech: Stores still matter. Where’s Amazon?

People are eager to return to grocery stores, but Amazon seems to be missing the opportunity.

Stores still matter. Where's Amazon?

Irene Suosalo

Amazon has been so successful in the last year that words almost fail me. Except in one area.

Sales at Amazon's stores, mostly from its Whole Foods grocery chain, fell by 15 percent in the first three months of this year compared with the same period in 2020. Those sales have now been declining for a year.

The numbers from Amazon have gaping holes that make it hard to know exactly what's happening. But we can tell that something isn't quite working.

Nearly four years after Amazon agreed to a huge deal to buy Whole Foods and a year into a pandemic that played into the tech giant's strengths, it's worth asking two questions: Is Amazon losing in groceries? And why has one of the world's most ambitious and inventive companies mostly been a follower rather than a leader in one of the biggest spending categories for Americans?

What Amazon does in groceries matters to all Americans, even if we never buy milk and bananas from the company. Consumers and Amazon's competitors consider it to be at the cutting edge of innovation. But that's not the case in groceries — at least not yet.

Let me backtrack to those falling sales numbers from Amazon's physical stores. The problem is that those numbers don't include the grocery orders that people place online and then pick up at stores or have delivered. Those sales have mushroomed during the pandemic for Amazon and its competitors.

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An Amazon spokesman told me that adding up all of the ways that people are grocery shopping from Whole Foods, including online ordering for pickup or deliveries, shows that the company's sales have been increasing. Amazon doesn't give specifics, however, which is often a sign that the numbers aren't amazing. If Amazon is selling many more groceries than it did before the pandemic — as is the case with Walmart and Target — the company is being uncharacteristically quiet about it.

This makes me wonder whether Walmart's grocery sales, which increased by 9 percent in the year that ended on Jan. 31, are growing faster than Amazon's. That shouldn't be happening, given both Walmart's mammoth lead over Amazon in grocery sales.

I'm also going to say something that might sound wacky after a year of manic shopping by clicks: Real life grocery stores still matter. A lot. And that's not a great sign for Amazon.

Sucharita Kodali, who studies shopping and consumer behavior for the research firm Forrester, recently dug into our pandemic-altered habits and found that many people were eager to roam the grocery aisles again.

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Yes, many people tried grocery delivery or curbside pickups at stores for the first time during the pandemic, and some of those habits will stick. But, Kodali wrote in a recent report, "The vast majority of grocery sales in the U.S. happen and will continue to happen in stores."

Stores are familiar to navigate, and some people are nostalgic for their old habits, Kodali told me. And many people, according to Forrester's analysis, have been discouraged by botched orders, high prices or other problems with online grocery shopping.

Many companies, including Amazon, Target and Walmart, also pluck many items for online grocery orders from the regular store shelves. Grocery sellers need their stores for both in-person shopping and the virtual kind.

Let's see what happens to Amazon in the coming months. Those in-store sales could bounce back as city dwellers near Whole Foods stores come back and as office workers grab prepared meals again.

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But no matter what, Amazon's blah Whole Foods sales are worth paying attention to. They're another sign that something is amiss in what has been 15 years of Amazon's mostly disjointed and unsuccessful strategy in groceries.

Walmart, the regional chain Kroger, and start-ups like Instacart and Uber are trying clever ideas to shake up the grocery industry. Besides its still-unproven technology to skip the cashier lines at stores, Amazon's big move in groceries seems to be opening a new chain in addition to Whole Foods.

I remain interested in what Amazon does in groceries. But for now, maybe we should pay less attention to Amazon in this area until it shows that whatever it's doing is working.

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Before we go …

  • Mr. Beast Inc.: Jimmy Donaldson, the YouTube star known as Mr. Beast, is trying to build a business empire that includes investments in other online personalities and lending his name to a burger chain. My colleague Taylor Lorenz wrote about the behind-the-scenes strife in Mr. Beast's inner circle and whether people with big online followings can also build sustainable businesses.
  • Self-help and chaos in India: Indians using social media to find hospital beds and medical supplies during the country's coronavirus surge have a problem: They are overwhelmed by a deluge of unverified information, and some of them want social media companies to help, Bloomberg News reported. Rest of World also wrote about online self-help groups in India that have been questioned or shut down by the police.
  • Lumberjack TikTok? There is a bubble. In lumber. For real. And that has inspired lumber-related memes and turned a Canadian logger into a lumberjack TikTok star, Vox wrote.

Hugs to this

Here is Becky the hedgehog getting a bath and LOVING IT. (I think.)

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2021年5月3日 星期一

On Tech: Back to work the Google way

Also, touch-free tech for transit.

Back to work the Google way

Annie Jen

Google loves to be different. So it's no surprise that the company has out-there ideas for the post-pandemic office.

As Google starts to bring employees back to offices in some regions, it plans to experiment with ways to give them more elbow room and blend elements of virtual work with in-person collaboration. The goal, as my colleague Dai Wakabayashi described in an article on Google's vision of the new office, is to reimagine a happier and more productive workplace.

Dai spoke to me about what Google learned from the last year of employees working mostly away from offices, and whether a company with limitless resources will be a model of the future workplace.

Shira: What did Google find from more than a year of mostly remote work?

Dai: Google was surprised at how productive its work force was. Some employees liked working away from the office, or liked aspects of it, and weren't willing to go back to an office full time. One downside that Google executives talked about was missing some creativity and collaboration, and a difficulty in establishing workplace culture and trust, when people weren't together in person.

But even before the pandemic, Google had started to believe that its current office work environment was broken.

Broken in what way?

Part of the problem is that Google's work force has grown so quickly, and the company was packing people into offices. Google's parent company, Alphabet, now has 140,000 full-time employees, more than twice as many as it had five years ago.

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Some employees said that they had trouble focusing in the office because there were too many people and distractions. And some of Google's office complexes were so sprawling that it took people a long time to travel from one building to another. Office work didn't work for a lot of people.

What is Google trying to do differently now?

First, it wants to provide more safety or the feeling of safety by staggering how frequently people come to the office and eventually "de-densifying" its offices. That's to reduce the potential spread of Covid-19 now, and Google is thinking ahead to annual flu seasons and potential future pandemics. Google's head of real estate said that ensuring six feet of distance in the office meant it could use only one out of every three desks from the current configurations.

Google also realizes that it can't demand that people come into the office five days a week anymore. And it wants to be more flexible to people's changing needs. One example are work spaces that can be configured to the needs of a particular team or project. It's also experimenting with personal heating and cooling systems at desks and camp-themed outdoor meeting spaces. Google is calling these changes a pilot that will apply to 10 percent of its global work space.

Is this going to happen everywhere? Where are my outdoor work tents and personal heating system?

This is probably going to cost Google billions of dollars, and most companies cannot afford that. But Google has been a trendsetter for a long time in employment practices and office design. Tech companies like Google helped spread the concept of wide-open office spaces with high ceilings and desks crammed close together. If these new ideas about an office environment with the best of remote work and in-person wind up successful, elements of what Google is doing may filter down to other kinds of companies, too.

What questions do you have about how this will work for Google?

Some Google workers want to go back to an office full time, and others want to work remotely forever. How is Google going to cater to the individual desires of tens of thousands of people? If Google mandates that people must work from an office two days a week or so, will it fire people who refuse? Google knows that its workers are in high demand.

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And there are so many unknowns about whether a mix of remote and office work will be the best of both, or the worst of each. This is all a big deal for Google and for its employees. There is nothing more personal than freedom and autonomy around your work.

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TIP OF THE WEEK

Touch-free tech for transit

If you're planning to restart your commute to the office soon, you might be surprised to see technologies newly in use for buses, subways and other shared transportation. Brian X. Chen, The New York Times's consumer technology columnist, runs down some of the options to digitally pay for transit:

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With workers gradually returning to offices, many are preparing to commute. Something to be aware of is that your options to pay for public transportation may have changed over the past year to include touch-free options, like paying with the tap of a smartphone rather than inserting a ticket or a card. That's a boon in a pandemic-induced era of germophobia.

For iPhone owners, Apple Pay is now accepted by many transit operators in areas like the San Francisco Bay Area, Chicago, New York City, Los Angeles and Washington, D.C. For Android owners, Google Pay is also accepted by dozens of transit agencies.

So how do you set this up? The sites will vary slightly depending on where you are commuting, but the first place to check is your transit agency's website. For example, Bay Area commuters can visit the Clipper website and click on Pay With Your Phone. From there, the site will list steps to transfer or start a new Clipper card on Apple Pay or Google Pay.

Before we go …

  • A big lawsuit with big stakes: In a trial that starts on Monday, the maker of the Fortnite video game is claiming that Apple uses the power of its App Store to stifle competition and hurt app developers. My colleagues Jack Nicas and Erin Griffith wrote about what this court case means for the world of apps and iPhone users. (Jack also told DealBook what he's eager to hear from witnesses.)
  • The Clubhouse town square, or a weapon of authoritarians? Vivian Yee and Farnaz Fassihi explore the ways that Clubhouse, the audio-only conference app, is becoming one of the few places for people in repressive countries across the Middle East to freely connect and discuss taboo issues. My colleagues also ask: Will Clubhouse — like Facebook and Twitter — morph from a tool of free expression to another way for many governments in the region to control their citizens?
  • Quarantine necessity is the mother of invention: Bloomberg News wrote about several websites that have sprung up in Singapore during the pandemic to rent stuff like exercise bikes, portable washing machines and electronic pianos to travelers who are required to isolate in hotels or other government-chosen facilities for two weeks.

Hugs to this

The washer and dryer can be musical instruments? Yes, they can. (Turn the sound on for the full experience of this Rick Astley tune, belted out in laundry machine beeps and slamming doors.)

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