5 things: Alexa, you lost us $25B

Alexa, can you turn a profit? Amazon Prime Day is over, and while the final numbers aren’t in yet, the online retail juggernaut reports that it was the biggest sale yet. That’s good news for Amazon, but it turns out that one of its biggest selling products is a big loser for the company — the Amazon smart speakers. The so-called Alexa smart speakers lost Amazon more than $25 billion between 2017 and 2018, according to a recent report in the Wall Street Journal. That’s due to the company betting on the idea that selling the speakers at rock-bottom prices — the cheapest model runs around $20 during the Prime Day sale — would result in consumers making purchases through the service. By and large, though, Alexa users have used the speakers mainly as, well, speakers. The company reportedly focused much of its attention on the speakers and not enough on figuring out how to monetize them. Amazon is reportedly now working to figure out how to charge a fee for using the devices. Alexa, can you give us the definition of bait and switch? –Tim Inklebarger

Code, Canada: Say what you want about Canada … hey, 75% of the land is inhabited by trees … but give the country credit for trying to do something about the cost of groceries. The grocery code of conduct is now official after Walmart and Costco finally agreed to the terms. The agreement is supposed to keep suppliers from hitting retailers with fees and other sorts of espionage and help level the playing field for smaller grocers. However, a week after everything was signed off reviews were mixed. In our own LinkedIn poll we asked if the code would help lower the price of at-home food, and 67% said no. In fact, one voter made the following post: If government legislation has to intervene in business transactions is that heading towards Communism? Now, there is someone who is saying what they want. Some industry insiders believe the code will have some positive impact, but as far as big grocers are concerned, not many believe the agreement with suppliers will do anything to drop the price of groceries. I guess we will give Canada an A for effort. Its bacon, however, gets an incomplete … because it’s not bacon. —Bill Wilson

Bots and medicine: Automated phone systems are like talking to the hard of hearing. You feel like you must speak loudly, slowly, and clearly or get the dreaded, “I’m sorry, but I didn’t get that” message. CVS, however, is putting trust in the chatbot. The pharmacy retailer will be using AI more when it comes to people calling up for refills, new orders, and the like. If you do not know, there is a pharmacist shortage in this country and CVS, along with other retailers, are trying to find ways to make up the difference. The chatbot will be there for basic questions and basic functions. According to a recent Wall Street Journal article, Generative AI programs help alert pharmacists to information they should talk over with customers, and robots can even be used to count pills. Handling a diagnosis is way over the bot’s head, and may never be something AI could do. Since the chatbot can’t do everything, customers can ask for a live representative on the phone to come up with a solution or end result. They just have to speak loud and clear. —BW

Excuse us: SpartanNash can bang and boom all it wants. If it leads to a discount on food go ahead and light up the sky. Residents in Grand Rapids, Mich., are now enjoying what we will call a fireworks freebie after an unexpected clatter. The retailer decided to light off a 12-minute fireworks show to celebrate a night of the 2024 SpartanNash Food Solutions Expo and the 120th anniversary of the Our Family brand products. The city gave clearance a while ago, but residents were not informed there would be flaming objects fired into the sky that night. SpartanNash thought the right thing to do was apologize for the hearing inconvenience, and while it was at it decided to offer a 10% discount for food purchased online. So wait? On top of a free show at around 9:30 p.m. you are telling me shoppers also got a significant bang for their buck? Where is a nearby unexplained SpartanNash event when you need one? —BW

Weinermobile down: It’s been a big week in grocery news, but the biggest story, in our humble opinion, comes from Oscar Mayer, which rolled one of its six Weinermobiles on Interstate 294 in Chicago on Tuesday. No one was injured when the hot dog-shaped vehicle collided with a Hyundai sedan and took a tumble. What does this have to do with grocery stores, you ask? Well, as of press time, the Weinermobile’s next stop is set for July 27 at a Tony’s Fresh Market in the Chicago suburb of Round Lake Beach, according to CBS News. It’s also scheduled to appear at the Bud Billiken Parade in Chicago on Aug. 10. Will the Weinermobile be repaired in time? Will it be covered in scratches and dents? Whatever the case may be, just don’t put ketchup on it. This is Chicago and ketchup on a hot dog is illegal within city limits. –TI