Dive Brief:
- Amazon is set to debut a new business called "Pantry," aimed at capturing a bigger share of the consumer-packaged goods market and to compete directly against warehouse clubs like Costco, B.J.'s and Sam's Club.
- Pantry will be available to members of Amazon Prime, the company's service that gives free shipping and other perks to customers willing to pay an annual fee.
- The Pantry model will let shoppers order CPG items traditionally found in the center of a supermarket, including canned foods and boxed cereals. Customers can fill a specific Pantry-size box with any of these goods and avoid a shipping fee.
Dive Insight:
It was less than 48 hours ago that a senior executive at Costco said his company wasn't planning to enter the ecommerce/delivery game because it appeared Amazon didn't threaten the warehouse-club model. Things, it seems, change quickly these days. And that, after all, is Amazon's distinct advantage. No other company understands consumers' need for speed better than Amazon. We expect Pantry to do well.