One seemingly everlasting, huge, super stores on the outskirts of cities may have reached the end of their shelf life. Additional context to them change their closing down completely. Its becoming more and more difficult to invest. How do they compete . The how are they able to survive . Big super stores are not doing well. An entire sector is struggling. The. The big retail chains controls 70 percent of Food Supplies in europe. The agricultural and industrial sectors are directly impacted by this decline. To use these conversations can be very aggressive, then the big Food Retailers are rushing to save. What they can, as the competition is already kicking off. Amazon wants to control the distribution of most of the goods in the world. And food is a huge part of the worlds economy to talk to the all, to total of the year, 10200. And they say that they have good intentions and that theres no risk to us pocket for the jump all the time. You know it, how can we trust such as johnny, what well do today, the world of large retail chains is divided into 2 parts. On the one hand, there are brands organized as cooperative with independent stores such as laclare or edit. On the other hand, the centrally managed corporations, most of which use the hyper market concept, such as the out casino or care for the french pioneer, which has been experiencing the most difficult period and its history for several years now. A large number of bits, hypermarkets are thought to be in financial difficulties. Theres a little tight, we want things to be small and manageable. Hypermarkets represent that the humanize ation of trying an excessive consumption to the time when environmental awareness is growing and the effects of our consumption of becoming visible whole semester. The, the large retail chains have not kept up with current trends. But thats not the only reason for the crisis this sector is experiencing what is 2 plus one free mean . This is a nice the do you buy 2 items and get the 3rd one free for the same price . Is itll be deducted directly at the register. So see, so you see if i help or do owns the superstore one full frontal, it needs the 30 percent off to plus 160 percent off. Hes had special offers for several years now more than ever before. The only one who visits on these a full sort of has to do special offers and lower prices to attract and keep customers because we dont the only way to do it. Okay. No think it was only so this could be showing no retailer can avoid special offers in the food sector. These that, you know, like all the others care for also relies on low prices. But it seems to have stopped working. The. The super store has 17000000. 00 euro is a year in sales. At 1st glance, it seems to be doing well. But the business is in financial trouble. The, you know, when the guy, we end up with 50000 euros, were doing well in profits. We yes. Who you guys are so i could say, but we wont survive like this for another 10 years. A set for the loop for that would be too dangerous for our employees, jobs and for the survival of the stores. Now in the e commerce platforms are the new players on the market and they are threatening the survival of the traditional stores, the pin guns, and then the one thats just for the past 15 years or so digital, youve seen a steady decline and non food sales in on the market system, but this is the area that has the biggest margins, especially in the text offset, if not in foods decline to keep this of the profit has to come exclusively from philly on to be that thats impossible. Because of that, they made me when customers by offering lower prices evaluates motions of their me, losses and all stores off of more or less the same goods and the store. If you sell a bottle of cook for 0. 10 or more than the store next door with it, you will be perceived as more expensive. So especially with roman brown stores have to be careful reported. Thats why they sell them almost without any profit margin. You dont keep them because you know, so amount the concentration in the food sector is leading to a better price for with consequences for the entire sector. Starting with the stores themselves. The costs for 60 employees, for energy and the maintenance of the building. Its a lot of money. Supermarket operating costs are very high. The to cover these costs. Owners need a minimum profit margin of 20 percent. If its higher, they make a profit. If its lowered a loss, the special. So for the on the plus sign due to for this product, we have a margin of 4. 85 percent. Because with this one, its 2. 88 found a cisco sand here, 16 percent. The only uh, discover here 10. 8. Book showing us on the for the 12 products weve just seen, the profit margin is not enough to cover the operating costs really for attention. How do you survive . When you say new capacity . I think we trying to balance it out with other more profitable goods. The knowledge alone is so new. Come here. We have a margin of 4040 percent. Yes they dont. They have tons of the year. Its 30 percent loan is only one times a year. 25. They for yourself also, im about to see the suppliers also have to participate in this price for the if its the low c c news. If we want to keep prices as low as possible for consumers. Well, for the then everyone in the chain must do their part for cleaning the sound easy for cfo or to doesnt look after procurement himself to get the best conditions. The 1500 stores in the calf for group have a central procurement facility. The, all the european corporations have these centers today. Why leaning the attendance to im just a few decades ago know dates and supplies with the 500 sometimes thousands of contacting you or who ultimately purchased from them that i did send from one to die off to probably more than 80 percent of the voting amount is coming off the negotiations with 20 people. This isnt these a quantity of consolidation means the negotiations to reduce to very few im told the more important comments and pass now. Okay, lets see it on kind of in this even so this is actually when it comes to negotiations done in terms and conditions in the annual meeting with a crate that sits down with the consumer good sector to use these tools as can become very aggressive and forgot some to the sizes in spite until just a few interests class and i do have to negotiate a lot going on. And that can often be done using heavy handed type of thing that happened bundle competition between the major suppliers and the retail chains is getting tougher and tougher. Individual measures on store level no longer seem to work. So the european chains have joined forces the, if on his own go, no maam, like only large retail chains of ground, but so of the supplier awful. So i thought preference in the initial theyve become as powerful as the change themselves, some even more. So thats why the french superstore chains joined forces with other chains in germany, spain, italy, and other European Countries in order to maintain power over the suppliers and to continue to be able to enforce favorable conditions with them, you know, so, okay, so ill just let me tell the folks that hes on the big retail chains are innovative and creative, which can be seen really clearly in the international agreements. Theres that go on down that sort of international agreements. They lead to a situation in which suppliers pay money directly to the stores. The negotiations now take place at a european rather than a National Level in the european chains have joined forces to create for Large International retail alliances. Co panic made up a French Corporation laclare the german, rafe. Id group and other partners has over 12500 stores throughout europe. C, w t, whose members include co 4 and cora. This alliance represents the interest of 16000 stores. Asa corps with the 6 retail chains, including french group into my shape and german retailer etiquette deutschland. This collaboration represents 24000 stores. And finally, Verizon International with 15000 stores. The Super Centers are not simply procurement collaborations that buy goods from suppliers. What they actually do is Sell Services to suppliers the the assess real to conform up to one is the user. Its very difficult to Source Information about these purchasing alliances this month. And some of them dont even have a website. The husbands disability have very reticent with press releases, its travis host, feler. So we gain a lot of our knowledge by talking to supply as all trades companies or hundreds, one to name the best decision. As i said, nobody knows whats going on there. Whats being sold and at what price, nobody knows what happens to the money. There are 0 checks and balances and well, thats what thanks to a large number of stores. Calf for has long been the worlds number 2 retailer after the american wal mart group. But on top of the price for the traditional retail chains are waging today, they have to compete against new even more aggressive markets. Players whose us have hush it is a function is going just click this. Your new trends are putting pressure on the launch retail chain. Were going to see i need to invest with them, especially in modernizing their store to keep up with the digital revolution. Maybe because they are considerably behind the times in this respect. When they know it very well, but the competition today is not the store across the street from the online job. After conquering a large part of the non 2 sectors, e commerce platforms like amazon, are now launching a major attack on the food sector. And as in that pool, but it just that core math. So the amazon aims to be an all round or is that is to meet all consumer needs, no matter what kind say about it. And it started with books found and then came electronics and entertainment. Its more and then the tech style sector is on amazon, covered at all along the way to a separate lot. But finally, it was the turn of the food sector because thats the 2nd largest Household Expenditure item after housing. So it doesnt put staples the in the United States. The grocery sector is worth a 900000000000. 00 a year. And for several years now, amazon has been revolutionizing it. The giants of american retail are in an unprecedented crisis. On june, 13th, 2017. The sector experienced the blackest day in its history. They are getting some breaking news on the whole food or they might add to gas just now. Holy cow, this is such a game changer. Amazon to buy whole foods. This is it, this is what everybody thought could happen. They will now dominate food within the next 2 years. While duly detailed, usually these theres consequences for the entire industry which was already on its easy to do. So Retail Companies in general are losing 10 percent. Wal mart is losing 5. 5 percent and kind of fall in europe is losing 2. 7 percent. So the news caused a stir worldwide. Amazon bought superstore chain whole foods for 13700000000. 00 officially becoming a player in the food retail industry. The opposite to and from hoist. Whats the m as in video come along as acquisition of whole feats was a shock to the industry. And in fact, it was a wakeup call. And the amazon was serious about making huge investments in the store and network and get a degree and in im 50 and its that its not that amazon, that amazon views food as a project. Amazon views food as being strategic. If amazon can convince consumers to order groceries from them to turn the amazon for groceries and food throughout the year for all of their grocery needs, amazon then can easily convert them to buying additional products that amazon sells. Whether its furniture or clothing or anything else, a whole foods has been said to be a trojan horse for amazon to expand its retail offerings. Got them as well now as they would foods which those are for the amazon purchase of whole foods brought with big changes. Amazon began lowering prices on iconic products such as of a condos bananas and checking to see here to some kind of output. Suppliers were told that some of their products were too expensive for amazon, and they needed to lower their prices associated to told people, you know, those who had only a few goods in their assortment, couldnt keep up. And other suppliers had to accept the new conditions. So the price is at whole foods could generally be lowered whenever you walk into a whole food store. You will quickly realize if youre not a prime member, youre missing out on savings reduction in your grocery cost and new capabilities. New services that you can take advantage of. And so for over a period of only several years, some majority of whole foods, customers who were not prime members, frankly, have already converted. Done with lots of next my face tightness and the 1st of all im isnt didnt just biased on that quote, expertise and brown, potentially on mock and get coughed. They dont purchasing expedited costco, but strong on product. Yes, we stock supply by asked him to the 500. 00 and positive calls, the amazon learned at the grocery business with whole food. The 3 years later, the online giant went one step further by founding the new super store chain. Amazon fresh the, a taylor made concept amazon is focusing on medium sized stores where it can offer its own brands and all the apartments, the fruits and vegetables, the fresh products, the, the products, for instance, the customers can do their Grocery Shopping here. And also pick up or return packages they bought online. The amazon has created an ecosystem for consumers that combines digital and physical shopping. The david bishop is a specialist in us retail. This is the amazon dash cart. It allows the customer to simply put the item into the cart so that when theyre done, instead of waiting in a checkout line, they can just walk out with its 4 sensors. The shopping card can recognize all the products and the store. It is designed to improve the customers shopping experience. Okay, so were going to get a couple roma tomatoes for the family. We enter their po, you, which is a 4 digit code. So 4087, enter. And the says place i know into the cart. Well, it tells you exactly how much you just put in there and ill accept it in. Got a 1st time in the cart. Every item is scanned, automatically, 195, worked pretty well, and its added up directly by the payment software. One of the nice things about the dash card is that if youre on a budget, you can actually see how much youre spending as your shopping, which is obviously Something Different in new its practical for customers and very informative for amazon. Because all the habits of the users are stored. Now, the dash cart recognized that i picked up something, but its showing that its removed it from the cart because i put it back on the shelf. The dash part works very similar to the way the online experience works and that helps them better understand those shopping behaviors. The only way for someone like walmart to know that information is to be observing physically in the store. And thats just not simply possible. The shopping cart can also locate the path of each customer minute by minute, centimeter, by centimeter. Amazon wants to know as much as it possibly can about all of us and how we shop for food. Is it a really important part of that . They already know so much about how we behave online, what we do when were online, what were looking at, how long and so with the grocery stores, they learn on all of this Additional Information about us. They put that all together and they began to form a picture of who you are. It has an orwellian feel right in the us, amazon setup 12 such super stores and just 8 months. Okay, so i can hit view receipt, got the full receipt, and it looks like im good to go. But setting up such hyper connected stores requires significant initial investment. This is, you know, from the very beginning a course strategy of amazons has been. We will lose a lot of money and other companies that cant afford to lose money. Theyll go under. And then when theyre gone, we will own the market. The 1st 6 years that amazon was in business, they lost 3000000000. 00 selling books at a loss, and now amazon absolutely dominates the us book industry. So thats how it started, and thats the same strategy that amazon has used in one market after another. I believe the goal for amazon should be to have no less than 2500. 00. The 3000. 00 amazon price stores by 23rd, amazon is worth over a trillion dollars. They easily can make additional acquisitions of other retailers if they want. They can buy all of the available real estate that they want. So amazon absolutely has the potential to become the largest grocery retailer and us wisdom predict with a certain degree of accuracy. What will the grocery industry look like in the United States . What will it look like in europe and other countries around the world based solely on what happens in china . The will Online Retail platforms determine the global food market. In china, the digital giants are not just opening stores. They also want to take over the entire supply chain. This super store chain is owned by g d dot com. China is number 2 behind the pop up in 2018. This logistics specialist entered the grocery sector. The corporation targets the new generation of chinese, an affluent and hyper connected middle class that wants more information and services. Ready poppy wong is 23. She works in import export. She consults her phone when she shopping the the dealership i has answered all day. Lets have todd all of you. Sure. I want to know everything about the products side by solution is on this app, only know whether theyre organic, just and see what the us. This is why they would grow the child to the hatch. Thats Important Information to you. So we have, now i have confirmation that its an organic proto. Uh, so for joan cochlan own, just as important to me. Im to say about that. Yeah. The china has seen many food scandals in the past. The brand therefore focuses on absolute transparency. Yes, heres what i think. What is your thoughts with, you know, what is it to be on the phone digit pertaining data . This allows us to try to its easy dollars or we can share this information with customers to give them a better shopping experience. As of now you see if you through this data, we even know which products are in the highest amount of wiggle room. So we always know the light just trying to. Yeah. Using them. Okay. Yeah. So you should have something for you to come, dont know the trends and adapt to them. This exotic fruit, for example, received 98 likes from customers. So here to sing the 21st and foremost its about gaining customer trash is also for consumers. Theres something called perceptable trust. This is expressed in a smile from th