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Amazon.com buying Whole Foods!  I didn't see that coming.

 

I don't see how this is great for AMZN, but WDIK.  ???

 

Is AMZN good at integration of large brick-and-mortar acquired companies? Is it good at operating upscale grocery stores? Is the plan to be holding co and just let Mackey to operate the division (mostly) independently of mothership? Edit: IMHO, some level of integration would be beneficial, so a lot will depend on how well Bezos and Mackey jell.

 

I guess we'll see.

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Amazon.com buying Whole Foods!  I didn't see that coming.

 

I don't see how this is great for AMZN, but WDIK.  ???

 

Is AMZN good at integration of large brick-and-mortar acquired companies? Is it good at operating upscale grocery stores? Is the plan to be holding co and just let Mackey to operate the division (mostly) independently of mothership?

 

I guess we'll see.

 

I don't know either, but we are about to find out.

 

 

I believe there was a rumor about it a few months ago

 

I never heard the rumors.  This came out of the blue for me.

 

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No idea how I didn't see this coming, makes 100% sense to me.

Amazon groceries needs a wide dense network that only a chain like WFM can provide building it one by one doesn't make any sense, the 50% stock decline must have helped bezos decision and amazon pricing power can help get them lower costs from CPG companies.

Probably they will rename it to something like Amazon food market and offer all the services amazon offer now like AmazonFresh Pickup, amazon go and so on.

 

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No idea how I didn't see this coming, makes 100% sense to me.

Amazon groceries needs a wide dense network that only a chain like WFM can provide building it one by one doesn't make any sense, the 50% stock decline must have helped bezos decision and amazon pricing power can help get them lower costs from CPG companies.

Probably they will rename it to something like Amazon food market and offer all the services amazon offer now like AmazonFresh Pickup, amazon go and so on.

 

 

I don't know how I feel about this yet.  Amazon now runs a brick and mortar grocery chain with over 400 stores.  That is a big change.  I think if they are going to change the name you typed it in your post "Amazon Fresh".    I think they will keep the Whole Foods name though, it is a valuable brand in itself.

 

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The AOL/Time Warner moment for this generation?

 

That was my first thought.  I recently listened to the podcast "how i built this" with the founder of AOL and I was surprised to see that he and the board knew the issues and were upfront about it due to the shift from dial up so clearly he was trying to pivot. 

 

I don't think they will rebrand Whole Foods but they will add them in to their expansion of the Amazon 365 rollout.  Better use of trucks, etc.  Keep Whole foods with a premium brand add in some Amazon conveniences. 

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Hey all:

 

Didn't anyone tell Mr. Bezos that the Germans are coming?

 

Lidl recently opened their first store...and many more are to follow.  Aldi has also opened EVEN MORE stores in my area.  I don't think these guys fear AMZN at all...

 

In my area...I haven't shopped at a Whole Foods in a long time.  The people I worked with followed a similar path.  Trader Joes has taken a tremendous amount of business from WFM.  Their quality is about the same...but their prices are significantly lower.

 

I wonder if the wages at WFM will be lowered to match Amazon?

 

I can't help but think this is a bigly mistake.  We'll see.

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my two cents on online retail : yesterday I bought for the first time from an amazon competitor in my country (amazon doesn't have any centers here), the stupid company website only allowed me to buy each product in a separate order (with free shipping off course) but the fact that I have to get a separate delivery everyday for three days is very annoying so as e-commerce grows I see a very large competitive advantage in the fact one company can aggregate multiply products into one shipping and not annoy the person to death.

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Hey all:

 

Didn't anyone tell Mr. Bezos that the Germans are coming?

 

Lidl recently opened their first store...and many more are to follow.  Aldi has also opened EVEN MORE stores in my area.  I don't think these guys fear AMZN at all...

 

In my area...I haven't shopped at a Whole Foods in a long time.  The people I worked with followed a similar path.  Trader Joes has taken a tremendous amount of business from WFM.  Their quality is about the same...but their prices are significantly lower.

 

I wonder if the wages at WFM will be lowered to match Amazon?

 

I can't help but think this is a bigly mistake.  We'll see.

 

For some context if this fails i couldn't consider this a "bigly" mistake.  Its 3 percent of there market cap. 

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Hey all:

 

Didn't anyone tell Mr. Bezos that the Germans are coming?

 

Lidl recently opened their first store...and many more are to follow.  Aldi has also opened EVEN MORE stores in my area.  I don't think these guys fear AMZN at all...

 

In my area...I haven't shopped at a Whole Foods in a long time.  The people I worked with followed a similar path.  Trader Joes has taken a tremendous amount of business from WFM.  Their quality is about the same...but their prices are significantly lower.

 

I wonder if the wages at WFM will be lowered to match Amazon?

 

I can't help but think this is a bigly mistake.  We'll see.

 

For some context if this fails i couldn't consider this a "bigly" mistake.  Its 3 percent of there market cap.

 

It may only be 3 percent or so of market cap today...but what will it be in the future?

 

Further, it may take management's "eye off the ball", as I imagine running a live grocery store probably takes a lot of energy/attention.

 

Finally, I imagine that AMZN is going to lower prices "bigly" at WFM.  Might they even start to lose money with it?

 

We'll see.

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Really interesting transaction.  Not sure how to think about it.  I think it goes against the "retail is dead" theory.  Amazon, an exclusive online retailer wanting to get into the physical space.  There is real value to physicality.

 

We were talking about this at our house today.  My thought is Amazon slaps their name on Whole Foods locations.  My wife thinks Amazon's influence kills the brand.  Who knows.

 

I've noticed that Amazon is the Walmart of the current generation.  It's 'cool' to shop there, even if they're just an online Walmart.  They're on the same trajectory as Walmart circa 15-20 years ago as well.  I remember the thought that Walmart would end up taking over EVERY small town to the point where people would only have a single store to shop in.  It didn't happen like that.  I doubt Amazon will do the same.

 

At least Amazon purchased a high priced retailer.  Grocery is a terrible business for margins.  There aren't as many economies of scale either.  I worked at a grocery store and I know some products have to be sourced locally.  It isn't economical to be shipping milk nationwide, instead it's purchased from distributors locally.  Same with bread and other goods, all through different local distributors.

 

Maybe this is Amazon's AOL/Time Warner moment.  Or maybe it isn't.

 

If I were any grocery I'd be concerned about Aldi.  They continue to improve, their prices are very reasonable, and most of what they offer is organic.  They have their own natural/organic brand that isn't full of processed ingredients and the prices are rock bottom.  Between them and Walmart the local chains are struggling.  There's a local chain in our area that's tried to re-invent itself as a local Whole Foods.  They have more 'healthy' items and marked up food like crazy.  As long as we have people ignorant of health and food they will have customers.

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Bought Nikon B700 yesterday on Amazon. No legit sources cheaper than AMZN. Bunch of places - newegg, Walmart, Amazon marketplace - offering the camera through 3rd parties at $100 cheaper. No guarantees that these ain't grey market/international-cheapo-version/opened/refurb. At least one review on Walmart.com claims Indian version in open box... so...

 

Amazon won this purchase from me after some hesitation.

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https://www.theverge.com/2017/6/15/15812986/amazon-patent-online-price-checking

 

i don't know what kind of people use the free wifi a store/restaurant has, but still ack!

 

 

That is pretty bad, but customers will just disconnect from wifi and use their cellular connection so I don't think it is very useful.  Also, it could be that they patented this just to shelve it and sue any brick and mortar retailer that tries doing something like this.

 

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The AOL/Time Warner moment for this generation?

 

That was my first thought.  I recently listened to the podcast "how i built this" with the founder of AOL and I was surprised to see that he and the board knew the issues and were upfront about it due to the shift from dial up so clearly he was trying to pivot. 

 

 

Interesting, I listened to that podcast too and had a different takeaway. Seemed like he didn't really acknowledge that it was a bad merger.

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Amazon.com buying Whole Foods!  I didn't see that coming.

 

I don't see how this is great for AMZN, but WDIK.  ???

 

Is AMZN good at integration of large brick-and-mortar acquired companies? Is it good at operating upscale grocery stores? Is the plan to be holding co and just let Mackey to operate the division (mostly) independently of mothership?

 

I guess we'll see.

 

I don't know either, but we are about to find out.

 

 

I believe there was a rumor about it a few months ago

 

I never heard the rumors.  This came out of the blue for me.

 

http://www.cnbc.com/2017/04/12/whole-foods-stock-rises-on-report-amazon-once-weighed-takeover-bid.html

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