Amazon Asks CPG Cos. to Explore Future Without Stores

SEATTLE — Even as e-commerce giant Amazon.com makes headway into brick-and-mortar retail, it is asking consumer packaged goods (CPG) companies to consider a future without stores.

The Seattle-based company has invited executives from General Mills, Mondelēz International and other manufacturers to attend a three-day gathering in May to consider bypassing retail stores and shipping their products directly to consumers, according to Bloomberg.com.

The intent is to get CPG companies to think less about creating products that stand out on shelves and more about designing products that easily and quickly ship directly to consumers, the news outlet reported. For example, laundry detergent could sell in stronger packaging that doesn't leak, compared to weaker packaging designed more to market the product in-store. 

Additionally, manufacturers could churn out products for individuals rather than filling trucks.

Amazon's move should come as no surprise to anyone watching the grocery industry, and it's highly likely that Walmart, Costco and other retailers saw this coming, says Tushar Patel, chief marketing officer of Kibo Commerce, a Dallas-based omnichannel solutions provider. At the end of the day, it's likely everything will come down to price, shipping times and fulfillment.

To read more about Amazon's vision of a future without brick and mortar in CSNews Online's sister publication, Progressive Grocer, click here.