the former us ambassador to night to inform her special representative to ukraine. courage vulgar thanks for being on dw. thank you very much. you're up to date up next to our documentary, takes a closer look at the crisis of supermarket chains and price wars with digital platforms like amazon and alibaba. i'll be back again at the top of the next day, or a couple of them take care. the not just another day. so much is happening all at once. we take time to understand this is the day i'm in that's look at current use events, analyzed by experts and critical thinking is weekdays on d, w

the one seemingly everlasting, huge, super stores on the outskirts of cities may have reached the end of their shelf life what additional complexity 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 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 is on, 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 that there's no risk to us pocket for the fall. so tell me what, how can we trust, such as johnny, what we'll 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 its hypermarkets are thought to be in financial difficulties. there's 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 that's not the only reason for the crisis this sector is experiencing what is 2 plus one free mean, there's a nice the do you buy 2 items and get the 3rd one free for the same price? is it'll be deducted directly at the register. so see,

so you'll see available do owns this superstore one full funding. we need 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 on these a full so what he has to do special offers and lower prices to attract and keep customers because we don't 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 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 he got it, we end up with 50000 euros. we're doing well in profits. we yes, who you guys are. so i could say, but we won't 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, the guns, and then the one that's just for the past 15 years or so digital, you've 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, 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, he validated 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 or more than the store next door with it, you will be perceived as more expensive. so especially with bowman brown stores have to be careful reported. that's why they sell them almost without any profit margin. you don't keep them because you know, the 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. 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 a profit. if it's lowered a loss as well. so for the on

the plus sign for this product, we have a margin of 4.85 percent. because with this one it's 2.88 pound cisco sand here, 16 percent now. and the uh, discount pulled up here 10.8, book showing us on the, for the 12 products we've just seen, the profit margin is not enough to cover the operating costs. we already forgot to mention. how do you survive when you say new capacity? i think we try to balance it out with other more profitable goods. the knowledge nowadays. so you come here, we have a margin of 4040 percent. yes. you don't have tons of the year. it's 30 percent loan. the sony ones here. 25.

they for yourself. also talk 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 cleaning. the sound is a full cfo or 2 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. why? leaning the attendant to i'm just a few decades ago, no dates and supplies with the 500000. sometimes thousands of contacting you or who ultimately kind of just trying to. 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 isn't these

a quantity of consolidation means the negotiations to reduce to very few told the more important comments and perhaps not. okay, let's see it on kind of in this. even so this is actually when it comes to negotiations on, in terms and conditions in the annual meeting with a crate that sits down with the consumer good sector to use. these tools can become very aggressive and forgot some to the sizes in spite until the so to interest, slap and do you 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 ma'am, like only large retail chains of grown, but so of the supplier awful. so i thought preference in the initial, they've become as powerful as the change themselves, some even more. so. that's why the french super store 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 just let me tell the folks that keeps on flipping retail chains are innovative and creative, which can be seen really clearly in the international agreements. there's 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 pernix made up a french corporation laclare, the german, rafe. i'd 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, the,

the sas real to conform up to one is the teaser. 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 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 of us. they 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 well, that's what thanks to a large number of stores. calf for 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 who sort of hush it is. a function is going just click this, your new trends are putting pressure on the launch retail changes 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. and they know it very well, but the competition today is not a 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 the comments on amazon names to be an all round or is that is to meet all consumer needs,

no matter what kind of less about it. and it started with books found and then came electronics and entertainment as well. and then the tax style sector is on amazon, covered at all along the way to separate off. finally, it was the turn of the food sector because that's the 2nd largest household expenditure item after housing. so it does inputs 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 blackest stay in its history. they are getting some breaking news on a whole food. all we 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 use like this, there's consequences for the entire industry which was already on it's 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 superstore chain whole foods for $13700000000.00 officially becoming a player in the food retail industry. the opposite the children, hoyt foot still m as in vice city. how long is that position of whole foods was a shock to the industry? and in fact, it was a wake up call and that amazon was serious about making a huge investments in the store network and get a degree. hadn't been ein for. yeah, 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 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 it's 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. go to amazon osh they wouldn't. foods, which was all for the amazon 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. so kind of 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, 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. so majority of whole foods, customers who were not prime members, frankly, have already converted. done what's, what's the next, my face tightness, m, as 1st of all, i'm as and didn't just biased on that quote, expertise, and brown, potentially on mock and get coughed. there's, you know, purchasing x but also but strong on products. yeah. some stock supply, but i asked him to different 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 they're done, instead of waiting in a checkout line, they can just walk out with it's 4 sensors. the shopping cart 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 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 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, 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 in new it's practical for customers and very informative for amazon. because all the habits of the users are stored. now, the dash cart recognize that i've 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 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 we're online, what we're 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 hasn't 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 i'm 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 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 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,

in 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 pop 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 should i head down to dollars the past. todd, all of you sure there's, i want to know everything about the products side by solution is only just baffling whether they're organic, just issue or do i use? this is why they would grow and i'm child to the head and that's important information to you. so you have, now i have confirmation that it's an organic product. silverdale. that's important to me. i'm to see about that. yeah. china has seen many food scandals in the past. the brand therefore focuses on absolute transparency.

yes, here's what i do. what is your thoughts with you? now, what was it to be hosting on the phone to pertaining data? this allows us to try to use it all. sure. 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. right? so we always know the latest trans. yeah. so you should have something on the page to come, don't know the trends and adapt to them. this exotic fruit, for example, received 98 likes from customers social to sing the, to the 1st and foremost it's about gaining customer trust is also for consumers. there's something called perceptable trust. this is expressed in a smile from the staff member politeness, clear language, cleanliness, nice music,

and so on the same scene, then there's rational trust, which is based on numbers and data. so judy dot com is able to provide his customers with a lot of information about a product and one. walmart, for example, does not own meal. 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 a revenue j. 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 internet. i say, you know what made out,

do i have to be quick as the online orders have to be delivered within 30 minutes? you the sure are you mind spanish officers and oh, so we don't have much time. i have to complete an order within 5 minutes and they, oh, by the event a lot of the time to delivery is key. even it's good now does, and you can come and best of us 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, it has a good chance that you purchased immediately. so phone calls about the situation we can talk. why is it of, of these is equal to one j d dot com. now use is self driving vehicles that can deliver to several customers in a row. a

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. a 70 time go through that and again, this is the robot's 6th tour today. it is already delivered over 90 orders. what that will will 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 thought. can you hear me during the day? sure. i'm sure we were there for the, at the whole idea of some of the we studied the consumption habits and picking times of the store, you can to better adapt to each situation was hold on. one of i'm doing this,

i don't know where to go. i, a number of daily orders has increased from 30 to about 100 and the shop on that day on. let's see if you're doing work on that. we can reduce the number of delivery people in this area of aging that we study to me because a lot of the packages can be delivered by robot already. this. will there be people who don't find a place to work in grocery in the coming years? of course robots will be on loading 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, but humans, the tech giants are already applying the innovations in all areas of the food industry.

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 on the think, trends on the thing. we don't have a portal to go to don't meet stories on that same washer or grow vegetables in a nutrient rich liquid. yeah. yeah. and so most line troops who are a good size, so i'm a sure you go for it. i'll check regularly on that. the liquid is circulating when kinds of thing. yeah, yeah. i sort of was,

i was doing that was all 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. oh yes sir. well, 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 planting. although it's very expensive to set top of the system. one thing it's very profitable. usually the actual 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 that's

a good thing. so they want to get it. how do you want to love appears on thing i go from the online giant's traditional farming is inefficient, too expensive and the losses are too high till the time to go long. so these farming methods are a good way for them to enter the agricultural sector. they want to optimize their production, become more competitive, reduce cost and waste, and to improve quality. the other thing the, the pulses, it's only the hold on those. these are their main arguments 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 productivity. the eggs produced different sounds when they

saw the angry cultural brain usually sound alerts to identify abnormal things, the accidental ones sound of 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, except the cameras and sensors record the animals movements throughout their lives . by so arms that have 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 don't traditional chinese farmers risk losing control of their farms when they use these new technologies. although it's all 100 total,

all they need to do is invest, and 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 giants and all of us all 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 perform the instead of being able to deploy, the range is so expensive that almost all foods can be found under one amazon brand or another that but the docs news, they even have spreads the ranges very well. find out and zip. so it covers almost

all consumer needed, but i don't want to any calls to get them 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 choices. but what is the price for this all inclusive 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 progress of the parish for logistics center in the northeast of the city. and then it went to scrapbook across the gym and border and the check border and blue box and the next day, the slovak in full tech. finally ending up here in this warehouse. and all set on top of the

this massive building is amazon's european return center for voc is almost dead center in europe. so it's an ideal location to be able to ship product from anywhere in europe. but also we want to look at labor rates, labor rates are cheaper or lower, and so vakio than other parts of europe. well, so the question really becomes, should there be a return capability for, for 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

daniella works at amazon and spelled back here. as opposed to having a sorta surprised that the electric turned by customers is completely destroyed and disposed of a local so even though an open packages. oh yes, i was both but i was up because it was received by the customer. i'll close up all this from the health perspective, this cause it might be good to go, but because you don't know where the product has been and looks at the bowl. i little ways to down. it was good i. but as long as the expiration date is not past, i would be more in favor of donating it to associations. organizations that have a good use for a bulk soft, i'm give it to fidelity. it will say in france it's illegal to destroy the food that is still edible. but these products are the property of amazon europe, who is headquarters or luxembourg, and neither there nor in slovakia are such practices,

forbidden by law. the it's incredibly wasteful. prime has 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 and 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 asked 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. seeking to open

quite a go to new ones. we could else seems providers are increasingly becoming serious competitors in the entire consumers. second time, that's dangerous because the strength is based on economic mechanisms of growth of community. that could be the bigger a company, i don't, the more competitive it is a 100 to use for those we have like behind kept chopping, we just don't. and so the gap is steadily void 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 in order, and under 6 minutes a dark store requires very few staff. but then even fewer customers come into the stores,

which further worse since the economic situation of the large hypermarkets in viet ones, the largest and stefan awesome dollars. if we look at the department store in gemini on the personnel costs are about 12 percent on average. and on the meet the cost, and then the rental costs are about 5 percent by productivity of not stores average in terms of sales, which means that's, i'm good. it's come with a whole lot to. these are fixed costs and when sales come on the pressure. okay it's that percentage quickly becomes very high. ashton is sale which has led to the rail group now being broken off and that's of the i the heating to slot in the future of the $34000.00 employees of the german fail stores is hanging in the balance in france kind of for has announced that it will cut $3000.00 jobs as part of a voluntary redundancy plan. oh, shaw plans, delay of $700.00 employees and you'll disappear, conducted you to come after a physical retail continues to shift online. retails, it will have

a major impact from the number of employees, but the ratio is one to 4. and the automation potentially online retail warehouse is good now has 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 give you a call to skip teach at least. and then i think that's up in the some progress in terms of technologies as they have check out the remote 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 when 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 the

the conflict sebastien. in a booster, you pray, it's true. so for the 1st slide, the russians defensive in the southern region lives operation. my guess this week is erie socked in by the ministry of just bible has and he's or he's country will differ based on what he was. conflict in 30 minutes on the w

the a bit of homeless fun to briefly. so guess about the war and the dresser, the forces he on the blocks for ukrainians. this is the 2nd summer interior of the russian attack. our focus on 0 in 19 minutes on d, w, and the discovery change your mind just a click away, find out best document trees on you to see the world the it's slide. now dw documentary

the, this is the domain use live from berlin after catastrophic wildfire. as greece is reading from devastating floods, officials say it's as they've greeks has changed climate sounds as the government sends and fruits to deal with p disaster the severe storms in record, rain full of already killed at least 14 people in the region with more rain expect that's also coming up a $1000000000.00 and depleted uranium weapons. do you.