Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Amazon is buying Whole Foods!!!
Old 06-16-2017, 07:08 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 15,135
Amazon is buying Whole Foods!!!

Quote:
Amazon, the e-commerce heavyweight, unveiled plans on Friday to buy the up-market grocer Whole Foods in a $13.7bn deal.

Amazon said it will pay $42 a share for Texas-based Whole Foods in an all-cash deal that includes the group’s debt.

“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said John Mackey, Whole Foods co-founder and chief executive.
https://www.ft.com/content/b707b439-...6-4a7fc8d180a2
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-16-2017, 07:09 AM   #2
Moderator
Ronstar's Avatar
 
Join Date: Aug 2007
Location: Somewhere between Chicago and Phoenix
Posts: 8,860
huh? Is it really true?
__________________

__________________
“Every day is a journey, and the journey itself is home.” — Matsuo Basho
Ronstar is online now   Reply With Quote
Old 06-16-2017, 07:11 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 15,135
Quote:
Originally Posted by Ronstar View Post
huh? Is it really true?
Yes. No joke.

Some background: News may out in April 2017 that Amazon had considered this move late last year, but decided not to: https://www.bloomberg.com/news/artic...ana-stepped-in
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 06-16-2017, 07:21 AM   #4
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,198
Wow! This actually makes sense. They needed a bricks and mortar presence for food.

Dang, they are going to take over the world.
__________________
JoeWras is offline   Reply With Quote
Old 06-16-2017, 07:30 AM   #5
Full time employment: Posting here.
FIREmenow's Avatar
 
Join Date: May 2013
Posts: 562
Oh, great. Now prime shipping will take even longer.
__________________
Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats.” ― Kenneth Grahame, The Wind in the Willows
FIREmenow is online now   Reply With Quote
Old 06-16-2017, 07:48 AM   #6
Thinks s/he gets paid by the post
Ready's Avatar
 
Join Date: Mar 2013
Location: Southern California
Posts: 1,697
What will be interesting to watch is to see if they allow products purchased through Amazon's web site to be returned at a local Whole Foods Market rather than having to ship it back to Amazon. That would certainly increase the convenience of buying things from Amazon.

And, I would imagine you will begin to see Kindles and Echo products displayed in all of the stores.
__________________
Ready is offline   Reply With Quote
Old 06-16-2017, 08:09 AM   #7
Thinks s/he gets paid by the post
Telly's Avatar
 
Join Date: Feb 2003
Posts: 1,447
I think it shows that even good companies can make bad decisions.

Whole Foods (AKA "Whole Paycheck") is on the skids. The premise they were based on, that people would pay more $$ for "pure" foods, has deflated. Other grocery chains are doing the same, without the large premium. There have been some newspaper stories on this recently.

The grocery business is low margin, has to be high volume, requires special handling, and product expires quickly (some in just hours!).

When a corporation buys a company that is on the skids, they (think) they have a great vision of what they will do to turn it around/merge it with their own, use, etc. In my observations and experiences, many/most of the acquisitions were ill-founded or ill-executed and were a big waste of $.

I think the "winner" today is Whole Foods shareholders, who can dump the stock today and get out!

Recency bias and aura can lead one to think that Amazon can do no wrong...
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
Telly is offline   Reply With Quote
Old 06-16-2017, 08:13 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 15,135
Whole Foods model worked well for them for two decades, and resulted in other stores carrying much better quality food. Good for me.

Sprouts is in merger talks with Albertsons.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 06-16-2017, 08:18 AM   #9
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,610
Amazon will use whole foods as their order online, swing by and they have your groceries ready to load in your car. Instead of spending 30 min in the grocery store you spend 15 min at work online and 5 min picking up your order.

I should have bought Amazon when I thought it was overpriced at $150 a share
__________________
Fermion is offline   Reply With Quote
Old 06-16-2017, 08:21 AM   #10
Full time employment: Posting here.
 
Join Date: Jan 2013
Posts: 571
Quote:
Originally Posted by Telly View Post
Other grocery chains are doing the same, without the large premium.
My local Shop-Rite sells some organic fruits and vegetables.
The prices are just as high as those sold at Whole Foods.
__________________
broadway is offline   Reply With Quote
Old 06-16-2017, 08:28 AM   #11
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 37,864
How exciting! I live very close to Whole Foods although I don't shop there.

Perhaps it is wishful thinking, but I would be delighted if Amazon Prime Fresh eventually became available in my area as a result of this deal.
__________________
Always be yourself, express yourself, have faith in yourself; do not go out and look for a successful personality and duplicate it.

― B. Lee








W2R is offline   Reply With Quote
Old 06-16-2017, 08:37 AM   #12
Full time employment: Posting here.
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 531
Bezos is an impressive guy. He is willing to stick his neck out and make mistakes in the process of building an amazing business. He is also willing to tell the Wall Street guys that he doesn't give a crap about quarterly or even annual earnings while he's on this path. As his successes grow and his mistakes are pruned from the bush, profits will take care of themselves.

Only time will tell whether this is a good move or not, though IMO odds are that it is. He's buying infrastructure and people that he couldn't hope to duplicate in a reasonable time frame. The brand? Maybe not so much.

Even a turtle can't make progress without sticking his neck out.
__________________
OldShooter is offline   Reply With Quote
Old 06-16-2017, 08:38 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,701
Should be interesting. Amazon (Bezos) is one shrewd guy...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 06-16-2017, 08:51 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,610
Going to go out on a limb here and predict Amazon will be the first trillion dollar market cap company and that it happens before 2021.

I should buy Amazon on the Beat Boho II contest and just let it ride.
__________________
Fermion is offline   Reply With Quote
Old 06-16-2017, 09:01 AM   #15
Thinks s/he gets paid by the post
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 2,268
Well all's I can say is my Walmart and Kroger stocks are taking a real beating because of this buyout. Maybe it's a buy "more" of them opportunity.

Actually I hope Amazon's kicks Walmart in the backside into better customer services. They are the biggest on the block (today) and they sure act like it.
__________________
Car-Guy is online now   Reply With Quote
Old 06-16-2017, 09:02 AM   #16
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,244
Genius.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 06-16-2017, 09:02 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,169
Bezos' purchase of a major newspaper looked odd too until one realized it was the Washington Post. "Never pick a fight with people who buy ink by the barrel." -Mark Twain
__________________
GrayHare is offline   Reply With Quote
Old 06-16-2017, 09:22 AM   #18
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 2,930
I agree it's genius. But Whole Foods customer service has gone down, that's maybe why it's not as popular. We don't go there as much.
__________________
Fedup is offline   Reply With Quote
Old 06-16-2017, 09:24 AM   #19
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,198
Quote:
Originally Posted by Fedup View Post
I agree it's genius. But Whole Foods customer service has gone down, that's maybe why it's not as popular. We don't go there as much.
Right. It is going to be interesting to see what happens. Just how much will Whole Foods change?

I can envision more than just pickup too. I see this more as a distribution system to feed into home delivery.
__________________
JoeWras is offline   Reply With Quote
Old 06-16-2017, 09:48 AM   #20
Recycles dryer sheets
Rosie's Avatar
 
Join Date: Jun 2010
Location: NorCal
Posts: 347
Oooh, the two shares of AMZN I bought about 7 yrs ago may really amount to somethin'.
__________________

__________________
Doing nothing is underrated.
Rosie is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
PSA: Save $8.62 Today On Amazon (sold by Amazon only) RetiredGypsy Other topics 50 02-23-2017 06:01 AM
8 Foods Worth Buying Frozen Midpack Health and Early Retirement 34 03-17-2013 05:26 AM
Buying low using Camel with Amazon Lsbcal Other topics 0 06-16-2012 09:56 AM
Wal Mart vs Whole Foods RonBoyd Other topics 9 02-22-2010 08:19 PM
Evil Foods? jacambece Other topics 4 02-02-2006 08:26 AM

 

 
All times are GMT -6. The time now is 09:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.