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Amazon is buying Whole Foods

By tvgnus   Jun 16, 7:19am   3 links   1,058 views   30 comments   watch (1)   quote      

http://www.centralvalleybusinesstimes.com/stories/001/?ID=32797

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1   APOCALYPSEFUCK_is_ADORABLE   1207/1207 = 100% civil   Jun 16, 7:34am  ↑ like (3)   ↓ dislike   quote    

ASSHOLE! Internet retailer buys ASSHOLE! yuppie mart.

What could go right?

2   FortWayne   710/716 = 99% civil   Jun 16, 7:44am  ↑ like (4)   ↓ dislike   quote    

That's nothing, a few liberal elites already bought Democratic party a while ago.

3   Strategist   1793/1798 = 99% civil   Jun 16, 8:55am  ↑ like (1)   ↓ dislike   quote    

The whole retail grocery business is in panic. Even Wal-Mart and Costco stocks are off 5% +

APOCALYPSEFUCK_is_ADORABLE says

ASSHOLE! Internet retailer buys ASSHOLE! yuppie mart.

What could go right?

It will eventually benefit the consumer. More competition better prices more convenience.

4   Booger   513/513 = 100% civil   Jun 16, 9:07am  ↑ like (3)   ↓ dislike   quote    

If I were an Amazon shareholder I would not be happy with this.

Also, I bet this means a few more states are paying sales tax on their Amazon purchases.

5   Strategist   1793/1798 = 99% civil   Jun 16, 9:12am  ↑ like (1)   ↓ dislike   quote    

Grocery stores like Albertsons that have unions were already having a hard time competing with Wal-Mart and Costco. There is no way they can compete against a company like Amazon. Their days are numbered. Another industry destroyed thanks to greedy unions.

6   tr6   95/95 = 100% civil   Jun 16, 9:30am  ↑ like (1)   ↓ dislike (1)   quote    

Strategist says

Another industry destroyed thanks to greedy unions

That's ok, your kids can get a job at Amazon for $2.95 per hour in the future.

7   Straw Man   606/610 = 99% civil   Jun 16, 10:09am  ↑ like   ↓ dislike   quote    

As WFM shareholder I'm happy. As Amazon shareholder I'm not sure what to feel. Need to give the whole situation more thought. So far AMZN has been VERY good to me.

8   HEY YOU   889/890 = 99% civil   Jun 16, 10:28am  ↑ like   ↓ dislike   quote    

Those wearing blinders fail to see the bigger problem.

9   Straw Man   606/610 = 99% civil   Jun 16, 11:13am  ↑ like   ↓ dislike   quote    

HEY YOU says

Those wearing blinders fail to see the bigger problem.

Yeah, yeah, we heard already: "REPCONTEAS!!!"

Do you know what King Carlos of Spain once said to Hugo Chavez after listening to his usual long and incoherent ramblings?

10   APOCALYPSEFUCK_is_ADORABLE   1207/1207 = 100% civil   Jun 16, 11:21am  ↑ like (2)   ↓ dislike   quote    

Retail grocery is hell and your fresh sections, fish/meat/produce, represent its seventh level.

11   Rew   759/759 = 100% civil   Jun 16, 11:45am  ↑ like (12)   ↓ dislike   quote    

My fave tweet about it ...

12   Strategist   1793/1798 = 99% civil   Jun 16, 11:50am  ↑ like   ↓ dislike   quote    

Rew says

ha ha ha.
The purchase price for Whole Foods = $13.5 billion.
Increase in Amazon's value today = $15 billion.
What a deal.

13   Rew   759/759 = 100% civil   Jun 16, 11:57am  ↑ like (4)   ↓ dislike   quote    

Oh, I agree, Amazon is frightfully unstoppable and this was a great deal for them.

Makes me wonder if anti-trust or monopoly cases won't be in Amazon's future soon. Retail power is getting awfully concentrated there.

14   Straw Man   606/610 = 99% civil   Jun 16, 12:03pm  ↑ like (1)   ↓ dislike   quote    

Rew says

Oh, I agree, Amazon is frightfully unstoppable and this was a great deal for them.

Makes me wonder if anti-trust or monopoly cases won't be in Amazon's future soon. Retail power is getting awfully concentrated there.

As long as Wal*Mart is around AMZN doesn't have to worry about that.

15   Rew   759/759 = 100% civil   Jun 16, 1:30pm  ↑ like   ↓ dislike   quote    

Straw Man says

As long as Wal*Mart is around AMZN doesn't have to worry about that.

Why Amazon's New Service Should Scare Every Single Dollar Store Known to Man, and Walmart
https://www.thestreet.com/story/14165481/1/amazon-takes-aim-at-walmart-through-this-new-initiative.html

;)

16   Straw Man   606/610 = 99% civil   Jun 16, 1:33pm  ↑ like (1)   ↓ dislike   quote    

Rew says

Straw Man says

As long as WalMart is around AMZN doesn't have to worry about that.

Why Amazon's New Service Should Scare Every Single Dollar Store Known to Man, and Walmart

Scared and dead are two very different things, aren't they? WalMart is not dead yet. Not even close.

17   Rew   759/759 = 100% civil   Jun 16, 1:43pm  ↑ like (2)   ↓ dislike   quote    

Straw Man says

Scared and dead are two very different things, aren't they? WalMart is not dead yet. Not even close.

Very true. All a matter of time.

18   BayAreaObserver   724/724 = 100% civil   Jun 18, 5:04am  ↑ like (1)   ↓ dislike   quote    

Amazon's deal with Whole Foods may give it something that has remained a mostly mystery to the Internet retail giant: Information about the behavior of people who shop in stores.

This matters because brick-and-mortar, while wounded, is still overwhelmingly dominant. By 2019, e-commerce will still only make up 9.8 percent of U.S. retail sales according to eMarketer. While Amazon may have a lot of online sales data, it lacks information on brick-and-mortar shopper behavior.

A Jeffries report on the deal noted one of Amazon's motivations was receiving "greater data and touch points with its consumer to help broaden the data set it can utilize," in particular real-time information and better profiles of its loyal users. "What they don't have yet is how their customers are shopping in offline locations and purchasing goods in the offline location."

Retail shoppers act differently from online shoppers, said Larry Light, CEO of marketing consulting company Arcature. Whole Foods customers want the experience of buying at the store, where Amazon's typical online shopper may be more into efficiency, he noted.

More: http://www.thefiscaltimes.com/2017/06/17/

Also in the deal, $3 billion in retirement assets at stake in Amazon acquisition of Whole Foods.

As of Dec. 31, 2015, Amazon had $2.1 billion in defined contribution assets, according to its most recent Form 5500 filing. As of the same date, Whole Foods had slightly more than $800 million in DC assets, according to its most recent 11-K filing.

More: http://www.pionline.com/article/20170616/ONLINE/170619895/3-billion-in-retirement-assets-at-stake-in-amazon-acquisition-of-whole-foods

19   Booger   513/513 = 100% civil   Jun 18, 6:14am  ↑ like (4)   ↓ dislike   quote    

If Walmart grocery department has anything to worry about, it's Aldi, not Amazon.

20   mmmarvel   43/43 = 100% civil   Jun 18, 10:00am  ↑ like (3)   ↓ dislike   quote    

BayAreaObserver says

Amazon's deal with Whole Foods may give it something

Heard a discussion about the acquisition yesterday and they brought up an interesting point. So many/most of the Whole Food stores are in urban areas. Leaving a package for someone in an apartment or high rise is risky (big chance that it gets stolen). By buying Whole Foods, Amazon can ask if the customer would like to pick up their package AT Whole Foods while they are doing their grocery shopping. Brilliant.

21   MMR   373/373 = 100% civil   Jun 18, 11:41am  ↑ like (2)   ↓ dislike   quote    

Booger says

about, it's Aldi,

Walmart has t been able to establish a strong foothold in Germany because of Aldi

22   goat   15/15 = 100% civil   Jun 18, 3:48pm  ↑ like (1)   ↓ dislike   quote    

mmmarvel says

BayAreaObserver says

Amazon's deal with Whole Foods may give it something

Heard a discussion about the acquisition yesterday and they brought up an interesting point. So many/most of the Whole Food stores are in urban areas. Leaving a package for someone in an apartment or high rise is risky (big chance that it gets stolen). By buying Whole Foods, Amazon can ask if the customer would like to pick up their package AT Whole Foods while they are doing their grocery shopping. Brilliant.

That's what I was thinking. I feel like they're making moves to expand their mini physical locations where people can pick up/drop off stuff - a potential cost saver / convenience they can use to be more competitive. They already do this with Amazon Lockers. Grocery stores are always near people. These physical locations will also be valuable to support their instant delivery ambitions (eg same day delivery, and maybe eventually 15 minute drone delivery). Drones + grocery will be game changing: "Alexa, bring me 1 pint of ben and jerrys". Those little things you sporadically want, but don't want bad enough to drive to the store for will be drone delivery domain.

Also, I think typical Whole Foods customers probably have more $$$ to spend, which is a good customer segment to go after for an amazon whose trying to sell stuff to people at a premium in exchange for the grocery delivery convenience. Look at their AmazonFresh stuff...slightly overpriced groceries, but very convenient purchase+delivery.

23   Strategist   1793/1798 = 99% civil   Jun 18, 6:03pm  ↑ like (2)   ↓ dislike   quote    

Rew says

Oh, I agree, Amazon is frightfully unstoppable and this was a great deal for them.

Makes me wonder if anti-trust or monopoly cases won't be in Amazon's future soon. Retail power is getting awfully concentrated there.

Not a chance. Walmart and Costco are the big players. More competition will only help us, the consumer.

24   TwoScoopsMcGee   1620/1620 = 100% civil   Jun 18, 10:16pm  ↑ like   ↓ dislike   quote    

I got Marmite from Amazon at a dollar cheaper than Publix.

25   BayAreaObserver   724/724 = 100% civil   Jun 19, 6:50am  ↑ like   ↓ dislike   quote    

Amazon to Slash Jobs at Whole Foods, Dump Cashiers, Switch to Cheaper Products in Price War with Wal-Mart.

Amazon expects to slash jobs and other costs at Whole Foods, “a person with knowledge of the company’s grocery plans” told Bloomberg. The ink isn’t even dry on the proposed deal, but synergies and efficiencies are already being trotted out.

The jobs to be cut include cashiers, who’d be replaced by Amazon’s own “Just Walk Out Technology,” now being tested at its Amazon Go convenience store in Seattle. When customers with the Amazon Go app on their smartphones walk into the store, the system logs them into the store’s network and establishes the connection to their Amazon account.

Amazon also expects to make a number of other changes, including to the merchandise the store carries, all in order to push down prices. Amazon would introduce private-label products – in addition to Whole Foods’ existing private-label products – to replace products that it considers too expensive. So get ready for Amazon’s food brands.

More: http://wolfstreet.com/2017/06/19/amazon-cut-jobs-whole-foods-cashiers-get-cheaper-products-price-war-with-walmart/

For those interested in this developing story also check http://www.bizjournals.com/ for various related news. There is an article in the Baltimore City Edition (check the upper left hand corner tab on the main page to select a city) however at the moment it is a "subscriber" only article.

26   Strategist   1793/1798 = 99% civil   Jun 19, 7:26am  ↑ like   ↓ dislike   quote    

BayAreaObserver says

Amazon expects to slash jobs and other costs at Whole Foods, “a person with knowledge of the company’s grocery plans” told Bloomberg. The ink isn’t even dry on the proposed deal, but synergies and efficiencies are already being trotted out.

The jobs to be cut include cashiers, who’d be replaced by Amazon’s own “Just Walk Out Technology,” now being tested at its Amazon Go convenience store in Seattle. When customers with the Amazon Go app on their smartphones walk into the store, the system logs them into the store’s network and establishes the connection to their Amazon account.

Another example of robots displacing humans. It ain't gonna end, it will only accelerate.

27   zzyzzx   847/847 = 100% civil   Jun 19, 9:50am  ↑ like (2)   ↓ dislike   quote    

BayAreaObserver says

Amazon to Slash Jobs at Whole Foods, Dump Cashiers, Switch to Cheaper Products in Price War with Wal-Mart.

Because people who shop at Whole Foods want cheaper products that compete with Wal-Mart???

28   Strategist   1793/1798 = 99% civil   Jun 19, 9:56am  ↑ like   ↓ dislike   quote    

zzyzzx says

BayAreaObserver says

Amazon to Slash Jobs at Whole Foods, Dump Cashiers, Switch to Cheaper Products in Price War with Wal-Mart.

Because people who shop at Whole Foods want cheaper products that compete with Wal-Mart???

Walmart shoppers like me want cheaper products at Whole Foods to shop there.
Amazon has destroyed every industry it has gone after. Is the grocery business next? time will tell.

29   BayAreaObserver   724/724 = 100% civil   Jun 26, 5:35pm  ↑ like   ↓ dislike (1)   quote    

That's nothing, a few liberal elites already bought Democratic party a while ago.

That's nothing, a few conservative elites already bought the Republican party a while ago too.

Now all we have to do is get the masses to buy themselves a "political party" big enough to get rid of the other two.

30   BayAreaObserver   724/724 = 100% civil   Jun 26, 5:38pm  ↑ like   ↓ dislike   quote    

With Whole Foods, Amazon Could Win Access To Food Stamp Funding — But No One Knows How Much

If Amazon.com closes its deal with Whole Foods Market, the high-end grocery store for which CEO Jeff Bezos has announced a bid, the e-commerce giant would be set to increase its access to taxpayer money — potentially channeling billions in federal funding to the world’s second-richest man. But because of the U.S. Department of Agriculture’s and grocery industry's tight-lipped stance on a program that funneled close to $66.4 billion in government spending last year to food sellers, the exact amount Amazon would gain by swallowing up Whole Foods remains unclear.

Amazon itself has already received more than $1 billion in state and local subsidy packages over the past 17 years, according to the policy research organization Good Jobs First, which tracks government subsidies. Such funding is often predicated on expectations that, by erecting new warehouses and fulfillment centers, the company is providing new jobs for the surrounding community, Good Jobs First Research Director Philip Mattera told International Business Times. Similarly, Whole Foods has received just under $1 million in state and local subsidies in the past 15 years for “enterprise zone[s]” and “property tax abatement[s],” according to the organization’s database.

But at the federal level, Whole Foods also receives taxpayer dollars as part of the Supplemental Nutrition Assistance Program, previously known as food stamps, in which eligible lower-income people pay for groceries with Electronic Benefit Transfer (EBT) cards, and the USDA provides funding to stores accordingly within two business banking days, according to the USDA.

The grocer (Whole Foods) did not respond to repeated requests from IBT to disclose its SNAP redemptions and related information.

The USDA does not disclose how much of the tens of billions of taxpayer dollars it gives to each of the participating firms. Although, in recent years, the agency has faced pressure to do just that.

More: http://www.ibtimes.com/political-capital/whole-foods-amazon-could-win-access-food-stamp-funding-no-one-knows-how-much

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