tv So Long Superstores Deutsche Welle September 6, 2023 11:15am-12:01pm CEST
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the one seemingly everlasting, huge, super stores on the outskirts of cities may have reached the end of their shelf life. what additional context to them chains are closing down completely. it's 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. to use that,
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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 world's economy to talk to the all total of the units, $1200.00. and they say that they have good intentions and then there's no risk to us pocket for the home phone. so tell me, how can we trust, such as genuine williams and for her 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,
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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. there's a little tight and we want things to be small and manageable. hypermarkets represent that the humanize ation of trying an excessive consumption at a time when environmental awareness is growing and the effects of our consumption to becoming visible holes in this the, the large retail chains have not kept up with current trends. but that's not the only reason for the crisis this sector is experiencing what is 2 plus one free mean the nice to do you buy 2 items and get the 3rd one free for
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the same price is it'll be deducted directly at the register. so see, so you see if i help or do owns this superstore one full frontal, it needs the 30 percent off to plus 160 percent off. he's had special offers for several years now more than ever before. the only one who visits somebody is a full sort of have to do special offers and lower prices to attract and keep customers because it's 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 don't feel 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,
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it seems to be doing well. but the business is in financial trouble. the see on the guys that we end up with 50000 euros. we're doing well in profits. we, yes, you guys are. so i could say, but we won't survive like this for another 10 years or to 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 guns, and then they, when that's just for the past 15 years or so digital, you've seen a steady decline and non food sales and hot markets, this will be kind of weird, but this is the area that has the biggest mileage, especially in the text all set up, if not in foods decline to keep this of the profits has to come exclusively from philly on to the defense. impossible. because let me remind me when customers by
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offering lower prices evaluates emotions of demi losses, and all stores are for more or less the same goods and the store. if you sell a bottle of cook 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. that's why they sell them almost without any profit margin with people. because you also know the concentration in the food sector is leading to a better price, more with consequences for the entire sector. starting with the stores themselves. the costs for 60 employees, for energy, and the maintenance of the building. it's 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 it's higher, they make
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a profit. if it's lowered a loss that's also 40 on the plus sign due to for this product we have a margin of 4.85 percent. because with this one, it's 2.88 found the cisco sand here, 16 percent are now in the discuss the here 10.8 talk showing us on the the 12 products we've just seen. the profit margin is not enough to cover the operating costs. easiest way to mention. 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 showing you, come here, we have a margin of 4040 percent. yes. it on the 10th of the year it's 30 percent now need to do the year. 25.
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they for yourself. also about to see the suppliers also have to participate in this price for the if it's 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 plenty to sound easy for cfo or to doesn't look after procurement himself to get the best conditions. the 1500 stores in the calf for group have a central procurement facility. all the european corporations have these centers today. fly leaning the attendance to i'm just a few decades ago. know dates and supplies with the 500000. sometimes thousands of contacting you or who ultimately kind of just trying to i did send from one to die off to probably more than 80 percent of the voting amount is covered,
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often negotiations with 20 people. this isn't these a quantity of consolidation means the negotiations to reduce to very few when the total more important comments and passing off. okay, let's 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 sex, tough to use. these tools as can become very aggressive and forgot some to the sizes in spite and tells us the 2 interests class. and i do have to negotiate a lot going on. and that can often be done using heavy handed to mid 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
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if on his own going, how many people like only large retail chains of ground, but so of the supplier also setup print result in the information they become as powerful as the change themselves some even more. so that's 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 i'll let just let me tell the folks that he's being retail chains are innovative and creative, which can be seen really clearly in the international agreements. is that go on to 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
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a national level. in europe and chains have joined forces to create for large international retail alliances. co pernix made up a french corporation laclare, the german rarefied 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, 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
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the, the csv is a good formats. one is the user, it's very difficult to source information about these purchasing alliances this month. and some of them don't even have a website. the husbands is filling out very reticent with press releases, etc, besides feeler. so we gain a lot of our knowledge by talking to supply as all trades companies or hundreds, one to name the best decision best. i said, nobody knows what's going on there. what's being sold and at what price, nobody knows what happens to the money. there are 0 checks and balances, and with thanks to
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a large number of stores. cat 4 has long been the world's 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 function is not going just click this, you don't need trends or putting pressure on the large retail chain. we're going to see i need to invest with them, especially in modernizing their store to keep up with the digital revolution of labor because they are considerably behind the times in this respect. lovely, you know 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 an apple and it just that i'm gonna pass
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on to amazon names to be an all round already because that is to meet all consumer needs, no matter what kind of sit down. and it started with the books about it and then came electronics and entertainment as well. and then the tech style sector is on amazon, covered at all. i don't the way to separate all, but finally it was the turn of the food sector because that's the 2nd largest household expenditure item after housing. so it does impose to 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 blackest stay in its history. we are getting some breaking news on hold for all we might add to gas just now. holy cow, this is such
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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. a duly detailed use like this has consequences for the entire industry which was already on. it's an easy to do. so retail companies in general are losing 10 percent. walmart is losing 5.5 percent in california in europe is losing 2.7 percent. so the, 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 foot stuff. emerson, vice city, how long is that position of whole foods? was a shock to the industry? and in fact, it was a wakeup call. and that amazon was serious about making a huge investments in the store network and get a degree and in i'm sure. yeah,
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and it's that it's not that amazon, that amazon views food as a project. amazon views food is 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 it's furniture or closing or anything else, a whole foods has been said to be a trojan horse for amazon to expand its retail offerings. go to amazon osh they one foot, which those are for the amazon purchase of whole foods brought big changes. amazon began lowering prices on iconic products, such as of a condo, is 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,
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those who had only a few goods in their assortment, couldn't 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 you're not a prime member, you're missing out on savings reduction in your grocery costs 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. what's the, what's the next? my face tightness, m as the 1st of all, i'm as and didn't just biased on that quote, expertise, and brown potentially on market coughed. they don't purchasing x, but i how's it going? but strong on product. yeah. some 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.
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amazon fresh the a taylor made concept. amazon is focusing on medium size 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
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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 they're done, instead of waiting in a checkout line, they can just walk out with it's 4 sensors. the shopping card can recognize all the products and the store. it is designed to improve the customer's shopping experience. okay, so we're going to get a couple roman 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 i'll accept it and we've got our 1st time in the cart. every item is scanned, automatically,
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195, worked pretty well, and it's added up directly by the payment software. one of the nice things about the dash card is that if you're on a budget, you can actually see how much you're spending as your shopping, which is obviously something different than new. it's 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 it's showing that it's removed 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 that's just not simply possible. the shopping cart can also locate the path
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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 that a really important part of that. they already know so much about how we behave online. what we do when we're online, what we're looking at, how long and so with the grocery stores, they learned 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 set up 12 such super stores and just 8 months. okay, so i can hit view receipt, got the full receipt, and it looks like i'm good to go. but setting up such hyper connected stores requires significant initial investment business. and you know,
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from the very beginning a course strategy of amazon's has been we will lose a lot of money and other companies that can't afford to lose money, they'll go under. and then when they're 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 that's how it started. and that's 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
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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 bottom. in 2018, this logistics specialist entered the grocery sector. ready
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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 answered all day. let's have todd all the issues. i want to know everything about the product side by solution is only just baffling and whether they're organic, just issue with the us. this is why they would grow the child to the hatch. that's important information. ok, let's have a so you have now i have confirmation that it's an organic proto. so those are down 5 times important to me i'm to say about that. yeah. the china has seen many food scandals in the past. the brand therefore focuses on absolute
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transparency. yes, here's what i think. what is your thoughts with you? now? what is it to be hosting your phone digit obtaining data? this allows the truck to it's easy dollars for we can share this information with customers to give them a better shopping experience. 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 transferred you to me and i'll tell you so you should have something for you to come. don't know the trends and adapt to them. this exotic fruit, for example, received 98 likes from customers associated to sing the 21st and foremost it's about gaining customer trust is also for consumers . there's something called perceptable trust. this is expressed in
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a smile from the staff member politeness, clear language of the cleanliness, nice music, and so on the same scene. then there's rational trust, which is based on numbers and data. judy dot com is able to provide his customers with a lot of information about a product. walmart, for example, does not on the oh yeah, hi. could you find mistakes for me, please? sure, the, the corporation has set up a cooking service and every store were professional chefs prepare the purchase goods directly. i'd like it. revenue g d dot com has redefined the role of super store clerks. there are no cashiers here. the majority of employees put together, customer orders from the internet about 50 percent of purchases are made on the
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internet. i say, you know what made out, do i have to be quick as the online order is, have to be delivered within 30 minutes. you live them in the dash or are you mind spanish officers and noble so we don't have much time. i have to complete an order within 5 minutes and they, oh, by the then don't lot the time to delivery is key. even you know, does, and you can come invest of us. so if i can offer you exactly what you're interested in seeing, i'm telling you it will be delivered within 2 hours. i can give you that. and of course that's a good chance. did you purchase immediately? so phone calls about the situation we're working 12. why is it of of these is equal to one j d dot com. now use this self driving vehicles that can deliver to several customers
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in a row. the self driving electric vehicle is fitted with numerous sensors. the corporation has been working on this project for 5 years. technical manager global. how is 30 years old? 70 time go through that and again, this is the robot's 6th tour today. it is only delivered over 90 orders with that horrible how works at the company's headquarters. 150 engineers are working on the development of the self driving delivery trucks. ex was she ended up in thoughts and you have a dream go sure to house or you are the for the, the whole idea of some of the we study the consumption habits and picking times of
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the store, you can to better adapt to each situation. what hold on one of them they've been, they've had enough waiting to have a number of daily orders has increased from 30 to about 100 and the shop on that table unless you're doing work on that to. yeah, we can reduce the number of delivery people in this area. amazing that we studied me because a lot of the packages can be delivered by robot already there. will there be people who don't find a place to work in grocery in the coming years? of course, robots will be unloading trailers. robots will be real, punishing shelves. you're not going to need people to do that, but that's ok. that's what we do as a society, we are always progressing. we will look at the technological revolution will lead to less and less work by humans. the tech giants are already applying the innovations in all areas of the food industry.
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j. d dot com is said to have invested the equivalent of 2500000 euro send this state of the art farm. here the corporation grows a dozen varieties of vegetables, mainly let us this, which are sold and it's paging stores. in their immaculate white coats, the employees look more like lab technicians than farmers. there's not much risk of getting dirty here. well john, he manages the farm only thing trans on the thing. we don't want to go to don't need sort all these on is i pay more sure. like grow vegetables in a nutrient rich liquid. yeah. yeah. and so mostly true to reduce the size, so i'm not sure you go for it. i'll check regularly based on the liquid is
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circulating well causing a yeah. i sort of was, i was dealing with that level of cultivation takes place in hydroponics. the vegetables grow in the liquid fertilizer. so this means no. pesticides are necessary and promises high yields only pay the full time, not just you or my email in case some of the spinning should, can be harvested between 15 and 19 times. so yeah, that's $4.00 to $5.00 times more conventional soto content. although it's very expensive to set up the system, i want to say it's very profitable. it will be as a call from the call center. so they are the one heck their firm produces up to $110.00 per day with just 8 employees on a traditional farm. it would take about a dozen employees,
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the cost a so they want to get it. how do you want those appears on thing as well? for the online james, traditional farming is inefficient, too expensive, and the losses are too high. so the tie adult loan. so these farming methods are a good way for them to enter the agricultural sector. you don't, they want to optimize their production, become more competitive, reduce cost and waste, and to improve quality. the other thing to me, tulsa, generally hold on these are their main arguments, you know, with chinese suppliers must not miss out on this development here. that you're not sure if i didn't think us a phone call in the chinese agriculture is entering the age of artificial intelligence. the alibaba recently launched the agricultural brain program designed to help dig farmers increase their
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productivity. the banks produce different sounds when they saw the agricultural brain usually assembled edge to white down to buy at normal things. the accidental wants to the right. each animal is fitted with a chip. as soon as it is born. what this allows the health status of each pick to be monitored in real time x, the cameras and sensors record the animals movements throughout their lives is by so arms and intelligent disease control effectively improve the survival way to fix the number of picks or has increased from 22 to 25 last year to 25 to 28 this year with a 10 percent increase in revenue. the traditional chinese farmers risk losing control of their farms when they use these new technologies. although it's all 100 total,
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all they need to do is invest in the online giants can dominate the market in a sector. they say they have good intentions and that there's no risk for us. but how can we trust such jobs and all the so in europe, amazon is lying in wait. the american corporation has already entered into partnerships for the production of its own brands. several dozen products are available. amazon has focused on widely used consumer goods that come from the for the often to deploy the ranges so extensive that almost all foods can be found under one amazon brand or another. that paradox news. they even
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have spreads the ranges very well. find out examples. so it covers almost all consumer needed, but i don't want any consent to to encourage consumers to buy groceries online. the online retailer offers the same customer service that has enabled it to dominate the mail order business. with this coffee, for example, amazon prime customers have a choice to keep it or send it back. they get a refund. just like for any other product sold on the site, the amazon wants to be able to give the customer the opportunity to return it. and it doesn't matter whether it's food or a shirt or, or shoes, it doesn't matter. amazon wants happy customers. and the way to ensure that is by giving those customer choice. but what is the price for this all inclusive
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customer service? to find out, we've included a gps track or with this package, the a cool way to know that you do bobby pool salt, produce coffee has been on an amazing county district. the club yesterday left paris for logistics center in the northeast of the city. and it went to scrapbook across the gym and border and the chunk folder and the blue box in room and the next day, the slovak in ok. finally ending up here in this warehouse. and all set on top of the
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this mass of building is amazon's european return center. lock is almost dead center in europe. so it's an ideal location to be able to ship products from anywhere in europe. but also we want to look at labor rates, labor rates are cheaper or lower and sol vakio than other parts of europe. well, so the question really become, should there be a return capability for, for the very special conditions apply to food at amazon? after 2 days, the coffee ends up in this garbage plant, after a journey of 1700 kilometers from france, our coffee, whose minimum shelf life ends in one year, ends up in the waste processing plant. the
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daniella works at amazon and spelled back, yeah. there's a book that i really thought i saw, but i was up to 300 tons by customers is completely destroyed and disposed of a local so even though an open packages, oh yes, eligible for that. was that because it was received by the customer? i'll close up all of us from the health perspective. it might be good to go, but because you don't know where the product has been and looks like a ball, little wasted around it was good, but as long as the expiration date has not passed, i would be more in favor of donating it to associations. organizations that have a good use for a full arch soft, i'm give you the telling me it was in france. it's illegal to destroy the food that is still edible. but these products are the property of amazon, europe, who's headquarters or the luxembourg,
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and neither there nor in slovakia are such practices, forbidden by law the i, it's incredibly wasteful prime, has it conditioned us as consumers to imagine that it's that it's free, right? we're told this is free, you sign up for this, you get free shipping, you get free returns, it's free. but of course it's not free, you know, it's not free or free environments. and so it creates this mindset where we're not, we don't take any responsibility. amazon explains that return food may not be recycled for reasons of health safety and ads that the return of edible goods accounts for less than one percent of returns through it's money back guarantee. the american corporation is said today to generate about 10 percent of sales of consumer goods in france. signal to open play,
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you go to new ones because this seems providers are increasingly becoming serious competitors in the entire consumers. second time, that's dangerous, because the strength is based on the economic mechanisms of growth. if can be that, that could be the bigger a company, i don't, the more competitive it is. a 100 teams for those with black behind, kept chopping wood you've dealt with. so the gap is steadily boy, and then it gets to close. in europe, 110th of grocery sales are now made without customers entering a store to avoid missing the boat. traditional suppliers are trying to copy the model of the e commerce giants in particular by offering shorter delivery times. the casino group has set up a super store warehouse where countless robots prepare an order, and under 6 minutes a dark store requires very few staff.
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but then even fewer customers come into the stores, which further worse since the economic situation of alerts, hypermarkets in viet ones, the largest and s $25000.00. if we look at the department store in germany, done, the personnel costs are about 12 percent on average, and on the me course. and then the rental costs are about 5 percent by productivity . if not the stores average in terms of sales, which means that's i'm good. it's come with a lot to. these are fixed costs and when sales come on the pressure, okay. they hit that percentage quickly becomes very high. ashton is which has led to the rail truth now being broken off and that's what they are eating. slog in the the future of the $34000.00 employees of the german fail stores is hanging in the balance in france. kind of 4 has announced that it will cut $3000.00 jobs as part of a voluntary redundancy plan. all shop plans to layoff 700 employees,
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and you'll disappear conducted. you ask your physical retail continues to shift to online retails, it will have a major impact from the number of employees what the ratio is, one to 4. and the automation potentially online retail warehouse is now his considerable. so it's likely that many jobs, especially low skilled jobs when he push will be lost in the retail sector in the coming years between and i'll probably, you know, try to get you in office, get, see you at least. and then i think that's up in the some progress in terms of technologies as they have check out there are more checkouts. and there is also going to be a number of fully automated stores. but i think the back button and the bulk of the interaction between the consumer and the retired and is going to be person centered on to it. and as one of the tools icon in the future, those who manage to combine technology and human service in a positive way may well come out on top. or
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on z w the this is the w news line from berlin, the german parliament debates the country's budget. with a focus on defense, german transfer all of sold says the country will contribute more to nato into courts. but the leader of the opposition friedrich net says that commitment isn't strong enough. also coming up for zill battles against the devastating storms and floods. a sight blowing stewards of terrestrial rain and winds causing at least $22.00 guests in the south of the country. and officials,
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