Amazon is buying Whole Foods!!!

[W2R]

Perhaps they are looking for a better model for online ordering/pickup of groceries. In the Seattle area, Safeway delivers. Amazon has always done delivery. The Prime Fresh concept needs work.

Test-driving Amazon’s brand-new, very weird grocery pickup service | The Seattle Times

- Rta

Gee! That's a terrible review, isn't it. Grocery delivery is still in its infancy here. Hopefully if we had Prime Fresh here, more of our local grocery stores would begin to deliver due to the competition.

 

[Midpack]

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.

Must be a store by store thing. Service remains superior at our closest WF, and product knowledge blows every other grocery away - no comparison. It's the only grocery around us without surly checkout people (How are you? I'll be fine at 3:00pm when I get off...), self checkout is preferable to me.

And while their prices are high on some things, they seem reasonable on produce & 365 brand stuff, and considering the (higher) quality meat & cheese prices aren't that bad either. Their prepared foods and bakery are also far superior to any local competitor, I often eat lunch when shopping there, I'd never do that at any other local grocery (yuck). We do steer clear of personal care & cleaning products, along with wine/beer at WF due to prices. FWIW

 

[ExFlyBoy5]

Funny how people love bezos (amazon) yet they hate the waltons (walmart.) Bezos has done more to kill brick and mortar stores than walmart could ever imagine. Everyone just keep drinking the amazon kool aid because its convenient for them.

Damn right it is. It's called innovation...not much you are going to do to stop it. Drinking the Kool Aide, though? That's somewhat of a stretch IMHO.

 

[Bestwifeever]

I think I live in a shoppers mecca--not one but two Whole Foods in a five-mile radius. I hardly ever go there (for beef, or some esoteric ingredient--I know for a fact you can buy juniper berries in bulk in case you need just one tablespoon for a pork recipe ), because shoppers mecca, and I'm doubtful we will have deliveries made. I see Peapod trucks around here all the time, though. But I am sure Amazon got a good price for the acquisition and has plans to use it effectively.

 

[ponyboy]

Damn right it is. It's called innovation...not much you are going to do to stop it. Drinking the Kool Aide, though? That's somewhat of a stretch IMHO.

Walmart created a one stop shop years ago. That wasnt innovation then? Is that what you're saying?

So much hate for walmart and so much love for amazon. I dont get it. But like everything else...when amazon becomes too big for its own good...people will start to hate on it...thats just human nature. Until then...drink away.

In all seriousness though...I ask this question every time I see a thread on amazon...and no one has ever given a real answer as to why theres so much love for bezos and hate for waltons...it makes zero sense.

 

[FIREmenow]

In all seriousness though...I ask this question every time I see a thread on amazon...and no one has ever given a real answer as to why theres so much love for bezos and hate for waltons...it makes zero sense.

I know why, but that discussion would shut down the thread immediately.

 

[W2R]

I think I live in a shoppers mecca--not one but two Whole Foods in a five-mile radius. I hardly ever go there (for beef, or some esoteric ingredient--I know for a fact you can buy juniper berries in bulk in case you need just one tablespoon for a pork recipe ), because shoppers mecca, and I'm doubtful we will have deliveries made. I see Peapod trucks around here all the time, though. But I am sure Amazon got a good price for the acquisition and has plans to use it effectively.

See, this is why I have hopes for Chicago. It gets a lot of bad press, but some neighborhoods there sound like a great place to live. Not only do you have the cultural advantages mentioned by ERD50, but also you have lots of shopping and services. We have almost no well established grocery delivery services here. At least, none well established enough that I would give them my credit card information, except for one that charges an arm and a leg. Peapod is well known, though. Attached is what I get when I go to peapod's website.

 

[ExFlyBoy5]

Walmart created a one stop shop years ago. That wasnt innovation then? Is that what you're saying?

So much hate for walmart and so much love for amazon. I dont get it. But like everything else...when amazon becomes too big for its own good...people will start to hate on it...thats just human nature. Until then...drink away.

In all seriousness though...I ask this question every time I see a thread on amazon...and no one has ever given a real answer as to why theres so much love for bezos and hate for waltons...it makes zero sense.

Well, to your specific question (Wal Mart v. Amazon), I just don't see that vitriol you speak of. You are right, WM was innovative and was the first major shift in consumer goods we have seen in at least a generation. I personally have no animosity towards WM and think that Amazon has been a good catalyst for their growth and latest innovation. About a year ago, I tried WM's shipping service...and you know what? It blew chunks...it was TERRIBLE. But now thanks to Amazon, WM is stepping up their game and making things better for consumers.

 

[JoeWras]

I know why, but that discussion would shut down the thread immediately.

Agree. It will cause bacon frying.

But I do think it is appropriate to compare the end product of shipping from Walmart and Amazon.

My experience goes along with ExFlyBoy, my order at Walmart blew chunks compared to Amazon. Competition is a good thing. And now with Whole Foods, Amazon is coming with big guns at Walmart. Recall the recent thread about Walmart having associates deliver. They may have seen this coming.

It is going to be interesting times.

 

[Fedup]

Who knows, AMAZN might buy Uber and have Uber drivers deliver packages and groceries on the way to pick up customers. No need for FEDEX, do they still use FEDEX for delivery?

 

[W2R]

About a year ago, I tried WM's shipping service...and you know what? It blew chunks...it was TERRIBLE. But now thanks to Amazon, WM is stepping up their game and making things better for consumers.

Glad to hear it! I get most of my non-perishable grocery store items online, either from Amazon Pantry or Walmart. Walmart has a better selection (IMO), but they take a lot longer to deliver. Also every single can from Walmart so far has been badly dented, and often boxes are broken open. Amazon pantry has never delivered a dented can or broken box. And here's an interesting fact - - both deliver via the same carrier, the USPS. So, I can only conclude that the damage was being done by Walmart itself.

Maybe I'll order another box of non-perishables from Walmart this week. Got to keep an open mind.

 

[ExFlyBoy5]

Who knows, AMAZN might buy Uber and have Uber drivers deliver packages and groceries on the way to pick up customers. No need for FEDEX, do they still use FEDEX for delivery?

Well, I think Amazon is doing more in-house deliveries. For a while if I ordered something that qualified for same day or next delivery, it would be delivered by Lasership or a similar "last mile" delivery contractor. However, in the last month, any of the packages have a specific AMZ tracking number and they are delivered by a unmarked Mercedes delivery van that has a driver and a "delivery" passenger. I saw TWO of these trucks within about 10 minutes of each other just yesterday...so I think they are bringing much of their delivery logistics in-house.

One of the things that does amaze me about them is how FAST it seems like they adjust and innovate. Perhaps they are just THAT good at keeping the cards close to the chest, but man...it seems like these changes (like the fleet of brand new vans that are crawling around the ATL area) happen OVERNIGHT.

 

[Bestwifeever]

See, this is why I have hopes for Chicago. It gets a lot of bad press, but some neighborhoods there sound like a great place to live. Not only do you have the cultural advantages mentioned by ERD50, but also you have lots of shopping and services. We have almost no well established grocery delivery services here. At least, none well established enough that I would give them my credit card information, except for one that charges an arm and a leg. Peapod is well known, though. Attached is what I get when I go to peapod's website.

That's really funny--I think Peapod is really missing the boat on this. Better to extend into more markets and build a competitive brand regardless of initial return on the investment of that extension, imo. Good thing you have the Amazon option!

 

[JoeWras]

That's really funny--I think Peapod is really missing the boat on this. Better to extend into more markets and build a competitive brand regardless of initial return on the investment of that extension, imo. Good thing you have the Amazon option!

I thought Amazon would buy Peapod. That may be water over the dam now.

When I'm in the Chicago area I see those trucks all the time. I'll say this much: their trucks act as mobile billboards. Very distinctive. Got my attention.

 

[Beldar]

Smart move, if it goes through Amazon would instantly have hundreds of locations in place to implement the "Amazon Go" grocery shopping concept, in addition to having an "Amazon Fresh" shipping point. They could even stick an Amazon Locker in each location too.

Only $13B? No problem.

_B

 

[Fermion]

I think car insurance is next. Watch out Buffett, Amazon is coming for your meat and potatoes.

 

[daylatedollarshort]

Funny how people love bezos (amazon) yet they hate the waltons (walmart.) Bezos has done more to kill brick and mortar stores than walmart could ever imagine. Everyone just keep drinking the amazon kool aid because its convenient for them.

Amazon forced many of the brick and mortar book stores out of existence and now they are opening up their own brick and mortar stores for books. I walked by a coming soon sign for an Amazon book store the other day - a block away from where a Barnes and Noble closed down last year.

 

[Gotadimple]

Interesting analysis today on the Money web site.

"Amazon can be expected to work to deliver better value to grocery customers, both online and within the brick-and-mortar space," said Bankrate.com senior economic analyst Mark Hamrick. ""This will be a good deal for consumers."
They expect grocery prices to go down. Margins are low in groceries: 3% for Kroger, 2% for Supervalu, and 5-6% for Whole Foods
They expect Amazon to deliver better value than the competitors
Amazon is famous for cutting profit margins even accepting multi-year losses as long as they gain market share.


Amazon Buying Whole Foods: Will Grocery Prices Get Cheaper? | Money

Amazon has been called the "Everything Store," and the name rings even truer now that it will have a physical presence all over the country, in a spot that most shoppers have reason to visit once or more per week. It's not hard to imagine that Whole Foods' locations will become hubs where consumers can pick up same-day "click and collect" grocery orders, or all manner of other items available at Amazon.com. They will also just be able to go grocery shopping too, of course, at lower prices.

- Rita

 

[Bestwifeever]

Amazon forced many of the brick and mortar book stores out of existence and now they are opening up they own brick and mortar stores for books. I walked by a coming soon sign for an Amazon book store the other day - a block away from where a Barnes and Noble closed down last year.

Although I agree with this, don't forget that Borders and Barnes & Noble and even Crown Books forced a ton of independent booksellers, including the little one in my town, out of existence long before Amazon was on the scene. I don't feel too sorry for the mega booksellers.

 

[JoeWras]

Although I agree with this, don't forget that Borders and Barnes & Noble and even Crown Books forced a ton of independent booksellers, including the little one in my town, out of existence long before Amazon was on the scene. I don't feel too sorry for the mega booksellers.

 

[euro]

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...

Agreed. I don;t see the point of this at all. That said, Bezos is much younger, and much, much richer than I, so...

 

[Fedup]

Agreed. I don;t see the point of this at all. That said, Bezos is much younger, and much, much richer than I, so...

But he has less hair than me.

 

[Bestwifeever]

Amazon up 2.44 percent today. Kroger down 9.24 percent. Someone thinks buying WF was a great idea.

 

[W2R]

Agreed. I don;t see the point of this at all. That said, Bezos is much younger, and much, much richer than I, so...

But he has less hair than me.

And he's not happily retired with everything he wants and oceans of time to enjoy it, like me.

 

[OldShooter]

News story headline seen today:

Amazon wants to become Walmart before Walmart becomes Amazon.

This deal is not about the silly popcorn issues like Whole Foods' pricing or recent financial results. It is strategic.