[000 00 00;00] the one seemingly everlasting, huge, super stores on the outskirts of cities may have reached the end of their self life. What additional context to them chains are closing down completely. Its becoming more and more difficult to invest. How do they compete . How are they able to survive . Big super stores are not doing well. An entire sector is struggling. The. The big retail chains control 70 percent of Food Supplies in europe. The agricultural and industrial sectors are directly impacted by this decline. The use of these conversations can be very aggressive and 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 total of a world. And you dont have to 200 until they say that they have good intentions. And that theres no risk to us pocket for the all the time. You know it, how can we trust such genuine williams as a hot 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 its 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 effect 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. The sector is experiencing what is 2 plus one free mean, theres a nice the do you by 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 available do owns the super store one for funding. We need the 30 percent off to plus 160 percent off. Hes had special offers for several years now. More than ever before. Only when you usually tell me the full shorter you have to do special offers and lower prices to attract and keep customers the shows isnt the only way to do it. Okay, no, think it was only so this can be shown, no retailer can avoid special offers in the food sector these day, 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 they get it, we end up with 50000 euros. Were doing well in profits. We, yes, you guys are. So i could say, but we wont survive like this for another 10 years. So 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 between 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 hot markets, this will be kind of weird, but this is the area that has the biggest mileage, especially in the text all sides, if not in foods decline, that you did. So the profit has to come exclusively from philly on to the defense, impossible. Because they made me when customers by offering lower prices evaluates motions of demi losses and all stores off of more or less the same goods and stores. If you sell a bottle of coat for 0. 10 more than the store next door with it, you will be perceived as more expensive. So especially with roman bronx 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 for this product, we have a margin of 4. 85 percent. Because with this one its 2. 88 pound cisco sand here. 16 percent are the only uh, descript. Pull it up here. 10. 8 to see what else on the so the 12 products weve just seen, the profit margin is not enough to cover the operating costs. We already had function. How do you survive . When you say new capacity . I think we try 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. We dont have tons of the year. Its 30 percent loan is only one times a year. 25, they for yourself also bought to see the suppliers also have to participate in this price for the i think 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 planning to 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 you out tend to, im just a few decades ago. No dates and supplies with the 500, sometimes thousands of contacting you or who ultimately purchased from them. Why did it send from one to die off to probably more than 80 percent of the voting amount is covered, often negotiations with 20 people. This isnt these a quantity of consolidation means the negotiations to reduce to very few when the total, more importantly, comments and pass. Now lets see it on kind of in this, even so this is actually when it comes to negotiation is done in terms and conditions in the annual meeting with a crate that sits down with the consumer, good sex stuff to use. These tools can become very aggressive and forgot some has decided since by interest. So to interest, slap and do you have to negotiate a lot going on. And that can often be done using heavy handed. Mit 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, petra joined forces the if on his own going, how many people like only large retail chains of grown, but so of the supplier of most of the printers in the information they become as powerful as the chains 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 let just let me tell folks that he simply being retail chains are innovative and creative, which can be seen really clearly in the international agreements. Is that going on 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 pernix 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 advocate deutschland. This collaboration represents 24000 stores. And finally, Horizon 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, this is assessed music and for months one is a teaser. Its very difficult to Source Information about these purchasing alliances this month. And some of them dont even have a website. The husbands is feeling very reticent with press releases, its travis, host, feler. So we gain and lots of knowledge by talking to supply as well, 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 walmart group. But on top of the price for the traditional retail chains are waging today, they have to compete against new even more aggressive market players. To sort of hush it is a tough as it is going. This is your new trends are putting pressure on the launch retail chambers. The 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. Youve told them i 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 pull up and it just the comments on the amazon names to be an all round or is that is to meet all consumer needs, no matter what kind of sit down. And then it started with books found and then came electronics and entertainment as well. And then the tech style sector is on amazon, covered at all along the way to separate all. But finally, it was the turn of the food sector because thats the 2nd largest Household Expenditure item after housing. So does input through the pulse, 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 black stay in its history. They are getting some breaking news on hold for 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. Duly detailed use like this has consequences for the entire industry which was already on its easy to do. So Retail Companies in general are losing 10 percent. Walmart is losing 5. 5 percent and kind of fall in europe is losing 2. 7 percent. So the, the news caused a stir worldwide. Amazon bought super store 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 vice city, how long is the creation of whole foods . Was a shock to the industry and in fact, it was a wakeup call. And the amazon was serious about making a huge investments in the store network and continue to create and in, im sure. Yeah, 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 to 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, as 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 was all for the amazon, the purchase of whole foods brought with big changes. Amazon began lowering prices on the iconic products such as of a condos bananas and checking to see here to southern will put, 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 costs and new capabilities, new services that you can take advantage of and so forth, over a period of only several years. So majority of whole foods, customers who were not prime members, frankly, have already converted. Done whats, whats the next, my face tightness, m, as 1st of all, im as and didnt just biased on that quote, expertise and brought home attention on mock and get coughed. They dont purchasing x, but i also go much strong on products. Yes, im stuck supply, but i asked him to the 500 and positive calls the amazon learned at the grocery business with whole food. 3 years later, the online giant went one step further by founding the new superstore chain. Amazon fresh the a tailor 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 and weve got our 1st item 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 recognize that ive picked up something, but its showing that its removed from the cart because i put it back on the shelf. The dash cart 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 card 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 ago. But setting up such high per 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 25023000 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 in the us. We can 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. Ready this super store chain is owned by g d dot com. China is number 2 behind the bought up for the 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. Poppy wong is 23. She works in import export. She consults her phone when she shopping the. The dealership has gone to dollars the past. Todd, all of the issue is, is i want to know everything about the product side by switching it onto the baffling of the weather there. Organic just issue with the us. This is why they were growing the child to the head and thats important information. Ok, lets have a saw has now i have confirmation that its an organic product. Oh those are jones. Thats important to me. Im to see about that. Yeah. China has seen many food scandals in the past. The brand therefore focuses on absolute transparency. Yes, heres what i do. What is your thoughts with you . Now . What was it to be hosted on the phone to pertaining data . This allows us to try to call out to you. Its easy at all. Sure. We can share this information with customer to give them a better shopping experience. Yes. Can you through this data . We even know which products are in the highest amount. Right. So we always know the latest trans. Yeah. You dont pay it so you should have. Pay is to come, dont know the trends and adapt to them. This exotic fruit, for example, received 98 likes from customers. Socially food seems to the to anyhow, 1st and foremost its about gaining customer trash is also for consumers. Theres something called perceptible trus