Saturday, September 8, 2012

The New TRILLION Dollar Retail Market – Instant Gratification

The New TRILLION Dollar Retail Market – Instant Gratification

A brand new space age Trillion Dollar Retail Market is upon us.

It’s a new way of living – EVERYTHING – Delivered In a Flash®.

Instant Gratification: The Holy Grail of Retail

Virtually everyone wants Instant Gratification, and always has.

In addition to those who want Instant Gratification, many people need it (e.g. Mobility-Challenged: Seniors 50+, People with Disabilities (temporary or permanent), Caregivers, Busy Families and Office Workers – collectively 50% of the population).

And some desperately require it (e.g. those with serious short or longer term illnesses).

A few Big Box retailers will lead the way in capturing a large portion of this new Trillion Dollar Market based on their unique market presence and their need for new sales, new markets and much higher incremental profits.

These visionary Big Box leaders will become the dominant retailer in their industry, the same as Walmart did 30 years ago with their unique store presence and Amazon did 15 years ago with their unique online presence. Both have continued to dominate these markets with their innovative vision ever since.

Other less visionary Big Box retailers who were innovators initially (which is why they grew so well then) are now becoming virtually irrelevant because of inertia or myopia. They will continue to fade away, while denying the reality of each part of this new market with every excuse in the book – until it’s too late, because Amazon and Walmart – their arch enemies – are already aggressively trying to own this ENTIRE new TRILLION dollar market before any retail executive even acknowledges its existence and/or importance.

The first step in gaining access to this huge new market is to understand it – which, by their own admission (shown below), only a few retail executives currently do, other than Walmart and, of course, Jeff Bezos (CEO Amazon).


Let us walk you through this Trillion Dollar Market, exploring the beginning stages, long term effects and its various constituents including the consumer.

Chart 1 (below) is the U.S. Government’s look at Amazon’s e-commerce “Killing Field” that, over the last 15 years, has caused Bricks & Mortar retailers’ sales to falter and, in many cases, to fail.

And the worst is yet to come.

Over the next 15 years, if left unchecked, Amazon’s Killing Field will decimate Bricks & Mortar stores as we know them today – putting thousands of your local area neighbors out of work. It’s that serious.

The reason is simple: As the price for gas, groceries and other commodities continues to rise exponentially, including school tuitions, health care costs and taxes, more and more people need a second job just to stay even, leaving less time for in-store shopping, hence the compounding convenience of e-commerce and its continuing explosive growth as shown in the next 3 charts below.

Let’s look carefully at this NEW Trillion Dollar Market.

And a typical Big Box retailer’s potential to become a dominant player in it.

BUT FAIR WARNING – This is not for the faint of heart – very few retail executives will have the vision or the courage to tackle something this large – other than Jeff Bezos.

I’m sure you’ve noticed what he’s doing lately – Same-Day Delivery (not 2 to 10 day UPS/FedEx) in certain major cities where, at a cost of MULTI-BILLIONS, he’s building fully automated fulfillment centers – like the 150 others he’s now building nationwide – you see, he’s determined to OWN this huge new market – before most retail executives even realize or acknowledge it’s there !

The Amazon juggernaut is just picking up steam – it will take Bricks & Mortar retailers a lot more than conventional retail strategies to entice people into their stores or regular marketing tools to offset Amazon, let alone beat them. Instant Gratification (i.e. “one-hour” order fulfillment) easily beats more expensive “same-day” order fulfillment with lots of room to spare. And, with orders being fulfilled within an hour from store inventory rather than remote distribution centers, stores are effectively generating more traffic and sales to local customers. Then add our SuperCyberCenter© Network featuring local stores and lower prices and wider choices and the competitive scene is reversed on Amazon and Walmart. Here’s how.

The New Retail Trillion Dollar Market

That Amazon Is Spending $Billions To Own – Virtually Unchallenged – Even By Walmart.

In chart 4 below, compare the tiny green stats for the Trillion Dollar Instant Gratification Market in the 2012 column (red outlined). Then look at the tiny blue stats for e-Commerce in 1999 – 14 years ago, when Jeff Bezos was just getting started. Surprise – initially they are the same size. Very few foresaw the meteoric rise of e-Commerce then – and the same thing is happening now with a wide open opportunity in the Trillion Dollar Instant Gratification Market for farsighted retailers – while Amazon and Walmart are struggling to dominate this market.

This new “Instant Gratification” market has always been “The Holy Grail of Retail”; strong enough to save the very existence of visionary Bricks & Mortar retailers – look at year 2026 (but they can’t wait until then to act).

This Elusive Dream comprises:

(1) 1-Hour Online Order Fulfillment – usually in 30 – 45 minutes;

(2) Same or Lower Prices Than In-Store;

(3) Free Delivery;

(4) Payment At Your Door by Cash or Credit Card (Note: We pay the store before leaving with the order);


(6) Consumers Choose Their Favorite Shoppers / Drivers;

(7) Advantage Member Discounts.

However, this Dream is Reality, as we’ve been doing it for years.

Here’s a Look at a Big Box Retailer’s Portion of This Market

CAUTION – Big Thinking Zone – very few retail executives will have the vision or the courage to tackle something this huge – other than Jeff Bezos.


Recently, we were once again told by a Big Box retailer:

“Your concept is clearly different in its approach and perhaps one day, many people will shop this way. I have discussed this with my leaders. For now though, we are going to pass.”

This is somewhat surprising based on:

(1) The financial mess this Big Box retailer is in stemming from Amazon and Walmart, that everyone else seems to know about,

(2) Over the last 2 years since Amazon first emerged as a serious threat, they used every marketing weapon conceivable to no avail.

(3) The huge number of people already “shopping this way” as shown in charts 1, 2 & 3 above,

(4) Amazon’s continuing growth as shown in chart 2 above – nothing “perhaps” about it;

(5) The fact that we offer Big Box retailers an opportunity to test the program against our prior results (similar to chart 5 below) in 3 progressively larger cities with a 3 month ROI before rolling out nationwide !

NOTE: The person saying this to us – after several one-hour phone meetings (and months of emailed information) asked our team to attend a 4 hour meeting in their headquarters with him and 2 of his team members, after which he stated their company needed to at least try our program and that he was going directly to his “leader” with this recommendation. He was very knowledgeable, dedicated and open about the seriousness of their current needs. We believe he was sincere in everything he said to us and to everyone else in the meeting.

Although this long term, battlefield-tested team knew what was needed, they couldn’t convince their leaders to proceed with the program. This was partly because their executives were focused on getting customers to visit their stores by using free delivery for in-store pickup as a tactic to increase traffic, which does not offset Amazon (or Walmart) in the slightest. AND this was despite the significant new profits the SuperCyberCenter program provided, which they acknowledged were realistic (albeit seemingly preposterous…..similar to chart 5 below). Our experience is the average online “Instant Gratification” orders we bring are double the value of average regular in-store orders!

Therefore, these “leaders” lost their final battle against Amazon (and Walmart), without even knowing it – regardless of their reason(s). (see “Options” below.)

But this not-uncommon attitude by retail executives clearly shows that once again a major market (as shown in detail in charts 4 & 5) will slip from their grasp simply because of inertia, fear, myopia and/or apathy (i.e. The Four Horsemen of the Retail Apocalypse) that we’ve been fighting for years.

Instant Gratification, like all new major “game-changers” that change the status quo, meets with strong resistance from executives. As accomplished entrepreneurs, we’ve seen this repeatedly before (see chart 8 below).

We’ve often heard the old phrase “It’s Too Good To Be True – So It Must Not Be True”. However, to think that 30 to 60 minute “Instant Gratification” that 83% of consumers either want or need, will not arrive in due course is, well, ridiculous. It’s just a matter of vision and leadership and a very small amount of time.

To gain their portion of this Trillion Dollar “Instant Gratification” Market, there are FOUR major Tasks that Big Box retailers must first accomplish – all essentially at the same time.

Task 1 – Win The Fight Against: Inertia, Fear, Myopia and Apathy.

Retail leaders need internal Champions to overcome the usual “can’t do” reaction of those who are already scoffing at all the above, as many others will do and have done… it’s what always happens with any new game-changing innovation. Otherwise, they will miss their significant portion of this new Trillion Dollar “Instant Gratification” Market. It’s a defining moment with far-reaching consequences.

Task 2 – Offer CONVENIENCE: The Number One Consumer Choice.

By now, any retail executive worth their salt knows Jeff Bezos is doing Same Day fulfillment based on the numerous articles published recently. Sometimes common sense is revolutionary.

A few retail executives are doing some make-shift form of same-day service (e.g. store staff assembles orders for local same-day courier to deliver). Many retailers have tried this and all have failed for myriad reasons they never understood (see “Rules Of The Game” below). eBay NOW is currently trying this in San Francisco but, without radical adjustments, it faces the same dismal results as both Simon Malls and General Growth Property Malls experienced while they were attempting to provide a similar service, resulting in $50+ million loss each.

However – offering Same-Day service to compete with Jeff Bezos is simply being a copy-cat and he has all the other power weapons (price & choice) to continue his slaughter – Unabated.

Copy-cats won’t match, let alone beat, Amazon. True Instant Gratification will.

Instant Gratification (The Holy Grail of Retail) includes 1-Hour Order Fulfillment as an integral component of SuperCyberCenters© – locally focused online marketplaces featuring physical neighborhood stores rather than web-only e-retailers. While it may seem impossible, outrageous or even inconceivable, this facility will soon be a household reality when even one senior retail Big Box executive starts to listen to their customers’ wishes (as we did – see chart 6 below – there have been numerous similar studies with similar results), thus fulfilling the consumer’s number one choice of “Convenience”.

The Good News: We can help retailers achieve this elusive Holy Grail of Retail. We uniquely have the experience, technology, ability and proven track record doing exactly that: Our patented system is 100% turnkey – Retailers and their staff need do nothing extra. Even their e-commerce website will not need any changes.


Task 3 – Provide Low PRICE: Consumer’s Number Two Choice – in a Very Close Second Place

Warning: Retailers must not attempt Task 3 until they are 100% comfortable with Task 2, because Task 3 is entirely dependent on Task 2 – the critical parts of Task 2 are patent protected.

OK – the first thing to REALLY understand is: WE ARE NOT A DELIVERY SERVICE. Task 2 is Rapid Delivery but that is the store front – not the store.

We Are Amazon’s Equivalent – Working With The Retail Sector – Not Against It. A COMPETITIVE BUSINESS DECISION.

Our website describes all this: (use zip code 33180 for our demo site – look around it, you’ll be amazed). It’s a SuperCyberCenter© offering ROOF (Rapid Online Order Fulfillment©). You will notice numerous top retailers listed as participating Third Party Sellers with their stores ALL located in close physical proximity to each featured Big Box store.

The Now Mall partners with major Big Box retailers to offer consumers Instant Gratification. The Now Mall is the Operating Partner and the Big Box retailer is the Marketing Partner.

Each participating Big Box site, in each local area nationwide, has their own respective SuperCyberCenter and is called, by example: “ABC SuperCyberCenter©”.

These Big Box stores’ sales will individually increase a minimum of 15% due to cross-marketing with their local “Third Party Stores” (TPS) all as per our detailed records.

TPS also form a critical role in the overall success of every SuperCyberCenter – see item 6 in “Rules of The Game” below.

THEN – the Big Box retailer (as Amazon has done for years) attracts even more consumers away from Amazon (and others), by using their new TPS “EVERGREEN” profits to further discount their products, thereby fulfilling the consumer’s number two choice of “Price”.

Look to the green stars in chart 5 to see the effect on both the Big Box significant sales and profits increase from this new Trillion Dollar “Instant Gratification” Market.


The Third Party Stores, mostly local “Mom & Pop” independent retailers, have also been hurt by Amazon and Walmart even more than the Big Boxes. Instant Gratification is also their salvation thanks to the leadership of their SuperCyberCenter Big Box marketing partner.

Task 4 – Offer Widest Possible Product CHOICE: Consumer’s Final Deciding Factor When Choosing Products & Stores

“The Enemies Of My Enemies Are My Friends”.

With other Big Box retailers similar to those in chart 3 above (with exceptions, but including major malls, grocers, pharmacies, restaurants, sporting goods outlets, pet supplies stores, etc), operating as non-competing, co-operating SuperCyberCenters, this gives the consumer a vastly wider choice than Amazon or Walmart COMBINED could ever offer. This fulfills the consumer’s fondest dreams of the highest form of Convenience, the best Price and the widest Choice. PLUS it provides a service level that will exceed their wildest dreams.

Remarkably, we are the only people in the world today with the necessary years of widely varied experience in all aspects of rapid fulfillment, technology and ability to beat Jeff Bezos at his own game, with a much improved e-commerce version as an Industry Game Changing Solution. Tom Monaghan, founder of Domino’s Pizza, is also one of our founders.

We developed these unique assets and strengths through years of providing Rapid Fulfillment of time-sensitive commodities with major companies like Price Club/Costco; Staples; McDonald’s, and others. Then, by conducting our own extensive field trials in numerous cities as entrepreneurs, we learned the importance of a joint venture team including both a Marketing Partner and the Operating Partner.

Now here is the Big Box retailers’ chance to get back in the ever expanding online game they’ve all been classically losing to date.

The Big Box Retailer Risk Taker’s Options are:

1. Let Amazon and Walmart take this market and hope they can get enough leftovers to survive chart 1.

2. Let another Big Box retailer go first and try to copy them later – OK so they’ll have a big head start.

3. Do it themselves because their team is much smarter than: Webvan; Borders;; PublixDirect; Sears’ “”; Simon Malls’ “”; GGP Malls’ “” and, of course, McDonald's, and more recently you can add eBay NOW to the list – just to name a few in the long list of North American rapid delivery do-it-yourself failures.

4. Team up with a really smart courier company over whom the Big Box retailer has complete operating and profit control.

5. Use the Doubting Thomas approach – because they still don’t believe such a Trillion Dollar “Instant Gratification” Market exists (same as our example retailer) but to be sure, simply have their store staff do it with a local same-day courier and if it fails, so what ! And if there actually is a Trillion Dollar market, great - they’ll be ready. (Problem is using a same-day model, even if they could get it to work, will never show them the size of the real Instant Gratification market – and their cost per order will skyrocket as happened at McDonald’s.)

6. Team up with eBay NOW in San Francisco – OK so they don’t get any Third Party profits or the EVERGREEN plan to lower their prices against Amazon (see above).

7. Pay nothing to start, and get a lot of other freebees – join eBay NOW or become an Anchor Tenant in somebody else’s SuperCyberCenter.

The Big Box Retailer's Non Risk Taker’s Options are:

1. Work out a Risk Free Joint Venture Agreement with us.

2. Work out a Risk Free Charter Member Agreement with us if they are the first visionary Big Box retail executive – doubling the profits we show in chart 5.

We would be pleased to show the following to any objective Big Box retail executive:

1. Where all the numbers come from and how they get there based on our 35 years of detailed statistics and documented successes.

2. A detailed profit and loss including 5 ways to look at everything – then a look at the next 5 years based on actuals and confirmed by a prior major retail client.

3. A detailed Ramp-up of EACH store, order by order, dollar by dollar, month by month, showing every detail of exactly how it all happens and the costs based on our past statistical information.

4. A detailed Overview showing how the first SuperCyberCenters will achieve the results shown in chart 5 over the next 5 years (as impossible as this may appear).

OUR PREDICTION: this market leader will emerge in time for this Holiday Shopping Season and will permanently reap the highest rewards as did Walmart and Amazon in similar circumstances years ago.

We invite your participation in our venture and/or introduction to Big Box retailer executives as a possible fit for our program.


Gail Nichols, Vice Chair

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