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Old 06-18-2017, 07:33 PM   #61
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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...
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I generally agree with all of this although Bezos continues to surprise/disrupt, now I hear they want to compete with Walmart and supplement their fulfillment process. Competing with Walmart for groceries seems like a low bar in the area where I live. I don't recall anyone ever having much good to say about Walmart grocery except low prices. I was recently there out of convenience and wouldn't go back for general shopping.
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Old 06-19-2017, 01:42 PM   #62
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IMO people are missing the point of this deal by getting all spun up about groceries.

Amazon is gaining over 400 stores and the services of over 90,000 employees, serving an upscale clientele. (Real Estate | Whole Foods Market) Every store has good truck docks and logistics space, plus good street visibility and a generally favorable reputation in its community. The fact that these stores currently sell food and mostly support themselves make the deal easier, as the Whole Foods line of business will not eat cash while it is being refitted to be more than, or possibly not even, a food store company.

$30M per store seems a bit rich, but how else could Amazon acquire this kind of asset almost instantly? What other asset even exists that is similar? Grocery store chains tend to be regional and physically larger. Coffee shops and fast food chains are mostly franchised and their real estate is unsuitable anyway. Car dealerships, same story. I can't think of a better single option if Amazon wanted an instant infrastructure platform suitable for an expanded and closer-to-consumers marketing scope.
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Amazon is buying Whole Foods!!!
Old 06-19-2017, 02:02 PM   #63
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Amazon is buying Whole Foods!!!

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Originally Posted by OldShooter View Post
IMO people are missing the point of this deal by getting all spun up about groceries.

Amazon is gaining over 400 stores and the services of over 90,000 employees, serving an upscale clientele. (Real Estate | Whole Foods Market) Every store has good truck docks and logistics space, plus good street visibility and a generally favorable reputation in its community. The fact that these stores currently sell food and mostly support themselves make the deal easier, as the Whole Foods line of business will not eat cash while it is being refitted to be more than, or possibly not even, a food store company.

$30M per store seems a bit rich, but how else could Amazon acquire this kind of asset almost instantly? What other asset even exists that is similar? Grocery store chains tend to be regional and physically larger. Coffee shops and fast food chains are mostly franchised and their real estate is unsuitable anyway. Car dealerships, same story. I can't think of a better single option if Amazon wanted an instant infrastructure platform suitable for an expanded and closer-to-consumers marketing scope.


This ^

Amazon gains a distribution network and brick and mortar. I foresee a Amazon ship to store option in the future to cut out/lower their shipping costs.
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Old 06-19-2017, 02:13 PM   #64
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I went to my local Walmart today and was dismayed by how few shoppers there were. Giant corporations like Amazon couldn't care less about destroying family-owned businesses like Walmart. What a shame.
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Old 06-19-2017, 02:21 PM   #65
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https://en.wikipedia.org/wiki/Creative_destruction

"According to Schumpeter, the 'gale of creative destruction' describes the 'process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one ...' "
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Old 06-19-2017, 03:31 PM   #66
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I went to my local Walmart today and was dismayed by how few shoppers there were. Giant corporations like Amazon couldn't care less about destroying family-owned businesses like Walmart. What a shame.
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Old 06-19-2017, 03:42 PM   #67
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Giant corporations like Amazon couldn't care less about destroying family-owned businesses like Walmart.
I assume you are being sarcastic by lumping Walmart in with family-owned businesses?
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Old 06-19-2017, 03:46 PM   #68
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The family still owns Walmart
https://en.wikipedia.org/wiki/Walton_family

Mom&Pop store, it ain't. Family-owned, it is.
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Old 08-23-2017, 09:18 AM   #69
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Looks like Whole Foods Market shareholders approved the takeover yesterday. https://www.bloomberg.com/news/artic...on-amazon-deal
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Whole Foods shareholders voted to bless a union with Amazon that the organic grocery chain's CEO called "love at first sight."

The approval from Whole Foods shareholders on Wednesday is one of the steps required to close the deal. It also needs the go-ahead from government regulators. Seattle-based Amazon.com Inc. has said it expects the deal to close before the end of the year.
Love the use of the word "union". It makes it sound so wholesome - which is not typical for corporate acquisitions.
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Old 08-23-2017, 04:12 PM   #70
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Last hurdle cleared. It's a done deal.
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The U.S. Federal Trade Commission approved the deal within a 30-day review period without an in-depth investigation after determining the tie-up wouldn’t hurt competition, the agency said Wednesday.
https://www.bloomberg.com/news/artic...-antitrust-nod
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Old 08-24-2017, 01:43 PM   #71
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There's a Whole Foods next to me. But, since in the future Whole Foods will be part of the collective called Amazon, one what future stores will be like. Healthy foods or hubs for food delivery or something else.
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Old 08-24-2017, 02:28 PM   #72
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There's a Whole Foods next to me. But, since in the future Whole Foods will be part of the collective called Amazon, one what future stores will be like. Healthy foods or hubs for food delivery or something else.
Could be both. One core strength of WFM is the sourcing and certification of the goods it sells - a real issue in an industry where there is substantial product misrepresentation.

Amazon isn't waiting around. They closed the deal today and already announce their first initiative. https://www.bloomberg.com/news/artic...e-foods-closes
Quote:
The company said it will begin slashing prices on a broad cross section of Whole Foods groceries Monday -- the same day the $13.7 billion deal is set to close. That will start with items such as chicken, eggs, avocados and organic farmed salmon. Amazon reeled off a long list of other plans to combine its leading e-commerce and delivery assets with the physical locations of Whole Foods stores.
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Old 08-24-2017, 02:50 PM   #73
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The company said it will begin slashing prices on a broad cross section of Whole Foods groceries Monday -- the same day the $13.7 billion deal is set to close. That will start with items such as chicken, eggs, avocados and organic farmed salmon. Amazon reeled off a long list of other plans to combine its leading e-commerce and delivery assets with the physical locations of Whole Foods stores.
This might be a negative for the brand new and highly acclaimed WF store near us as it has the reputation of being the store the "well to do" folks shop at as they can show off their BMW, MB. Bentley, etc while they pay up for the goods. If Amazon turns this into a discounter, I doubt if the existing clientele will still shop there.
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Old 08-24-2017, 03:37 PM   #74
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I live pretty close to a Whole Foods store, too. But honestly, I have only been there once and that was over 13 years ago. The prices seemed awfully high. Also, many here were not too impressed with their performance after Katrina in 2005. They were just about the last grocery store in the area to complete the hard work required to return to normal operations.

It sounds like Amazon has decided to change the image of WF from "Whole Paycheck", to a more affordable store. If they can do this and keep the quality intact, that would be nice.

But what I really want is for Amazon to use this opportunity to set up Amazon Fresh delivery services here. That would be so cool.
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Old 08-24-2017, 05:02 PM   #75
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I live pretty close to a Whole Foods store, too. But honestly, I have only been there once and that was over 13 years ago. The prices seemed awfully high. Also, many here were not too impressed with their performance after Katrina in 2005. They were just about the last grocery store in the area to complete the hard work required to return to normal operations.

It sounds like Amazon has decided to change the image of WF from "Whole Paycheck", to a more affordable store. If they can do this and keep the quality intact, that would be nice.

But what I really want is for Amazon to use this opportunity to set up Amazon Fresh delivery services here. That would be so cool.
Looks like you will have some perks at WFM because you are a Prime member.

Amazon Prime Whole Foods discount - Business Insider
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Old 08-24-2017, 05:15 PM   #76
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Looks like you will have some perks at WFM because you are a Prime member.

Amazon Prime Whole Foods discount - Business Insider
Wonderful! I didn't know that. Thanks.
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Old 08-25-2017, 11:25 AM   #77
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Yes, waiting on the Prime Member perks to see how well WFM then compares to Trader Joe's and the homegrown version: Puget Consumer Coop (PCC Natural Markets).

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Old 08-25-2017, 02:24 PM   #78
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Watched a story of Amazon's purchase of Whole Foods on the morning news with only a passing interest (I rarely go to Whole Foods currently) until a mention that Amazon may make Whole Foods one of the Amazon Locker locations to pick up deliveries. Well, that sounds like a really good idea for when I can't wait for the UPS or Amazon delivery person .
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Old 08-27-2017, 07:04 AM   #79
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Gonna stop by a Whole Foods tomorrow to see how much an avocado goes for. To see if Amazon's Whole Foods is worth the hype. Mr. Avocado will tell .
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Old 08-27-2017, 11:23 PM   #80
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Gonna stop by a Whole Foods tomorrow to see how much an avocado goes for. To see if Amazon's Whole Foods is worth the hype. Mr. Avocado will tell .

Just an aside: Their 365 generic brand stuff is pretty good and already priced well - the rest , well it can use some price cuts [emoji849]
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