Amazon buys Whole Foods

[TheKey]

Not sure if this interests you guys but since I work in M&A I have been geeked up about this today.

I think this deal could turn out to be a defining moment in the new economy. Amazon now has around 450 retail grocery stores out of which to deliver groceries ordered online and to sell their other products/beef up same day delivery. If their test of the checkout-less grocery store in Seattle works, it could be implemented nationwide.

Online grocery store purchases were up 6.8% last year, but the main problems have always been timely delivery of perishable goods and the customer wanting to pick out their own produce. This acquisition can help both of those problems. Brilliant move and $13.7 billion well spent. Let's see how it works out.

 

[Stash]

Not sure if this interests you guys but since I work in M&A I have been geeked up about this today.

I think this deal could turn out to be a defining moment in the new economy. Amazon now has around 450 retail grocery stores out of which to deliver groceries ordered online and to sell their other products/beef up same day delivery. If their test of the checkout-less grocery store in Seattle works, it could be implemented nationwide.

Online grocery store purchases were up 6.8% last year, but the main problems have always been timely delivery of perishable goods and the customer wanting to pick out their own produce. This acquisition can help both of those problems. Brilliant move and $13.7 billion well spent. Let's see how it works out.

It could be a game changer for sure, but we'll have to wait and see exactly how Amazon pulls it off.

As you mentioned, it's all about timely delivery of perishable goods.

I have to wonder how this ties in to Amazon's distribution plans?

 

[Duane]

Seems to tie in, at least in Texas, with HEB's home delivery and Kroger's curb side delivery services.

 

[dallasdave]

It could be a game changer for sure, but we'll have to wait and see exactly how Amazon pulls it off.

As you mentioned, it's all about timely delivery of perishable goods.

I have to wonder how this ties in to Amazon's distribution plans?

Going to the grocery is sure going to change !!!

 

[Stash]

Going to the grocery is sure going to change !!!

If we go at all!

Brave New World

 

[JIMMYBUFFETT]

I think it's pretty cool. I use the Walmart curbside shopping and haven't been to the grocery store in months. It's worked really well for us and I've only had a couple of substitutions so far when I've gone to pick up. I usually order on Friday, and schedule for 10:00 am pick up on Saturday. It gives my wife and I a couple of hours back on the weekends. I haven't let them pick me out any steaks yet, but have had no issues on produce and packaged meats like chicken breasts. I love the Whole Foods stores and would think between them and Amazon it would be even better than Walmart. Unfortunately there's no Whole Foods where I live.

 

[Reality]

Someone should start a diet grocery store chain called, "Half Foods"

 

[Trouty]

Someone should start a diet grocery store chain called, "Half Foods"

If it's half the price, I'm there!

Love Whole Foods, but it's too damn expensive to shop there exclusively.

 

[waldoputty]

Not sure if this interests you guys but since I work in M&A I have been geeked up about this today.

I think this deal could turn out to be a defining moment in the new economy. Amazon now has around 450 retail grocery stores out of which to deliver groceries ordered online and to sell their other products/beef up same day delivery. If their test of the checkout-less grocery store in Seattle works, it could be implemented nationwide.

Online grocery store purchases were up 6.8% last year, but the main problems have always been timely delivery of perishable goods and the customer wanting to pick out their own produce. This acquisition can help both of those problems. Brilliant move and $13.7 billion well spent. Let's see how it works out.

would u provide some insight into the halliburton/baker hughes/GE situation?

 

[Idgit]

If it's half the price, I'm there!

Love Whole Foods, but it's too damn expensive to shop there exclusively.

Whole Paycheck.

 

[Trouty]

Whole Paycheck.

Right!?

They have an awesome beer selection and great produce, but beyond that, I prefer Sprouts/Trader Joe's. Ralph's if I'm desperate.

And of course, all hail Costco!

 

[Idgit]

Right!?

They have an awesome beer selection and great produce, but beyond that, I prefer Sprouts/Trader Joe's. Ralph's if I'm desperate.

And of course, all hail Costco!

I've trained myself to just look for their 365 logos. It's actually surprisingly affordable if you do that, but you always run the risk of the wife throwing in a $15 container of berries or whatever.

They do carry Pliny the Elder, though.

 

[Trouty]

I've trained myself to just look for their 365 logos. It's actually surprisingly affordable if you do that, but you always run the risk of the wife throwing in a $15 container of berries or whatever.

They do carry Pliny the Elder, though.

Pliny the Elder is the reason I go there!

Idgit, we're gonna be friends

 

[Trouty]

I will say, they have a pretty awesome warm food section. Some really good salads and small foods to-go.

 

[MichaelWinicki]

It's an interesting acquisition. But I'm not convinced it's going to be a win for Amazon ultimately.

 

[JoeKing]

Amazon vs Walmart... who wins?

 

[DFWJC]

Theres a small group of companies getting way to powerful.
Its getting creepy
Almost like back in history when the robber barrons were going nuts.
Google, amazon, etc

 

[TheCount]

It's an interesting acquisition. But I'm not convinced it's going to be a win for Amazon ultimately.

Doubt anyone is "convinced". No one knows what their plan is, I sure hope they have one.

There is something interesting about this thing coming full circle. Amazon basically killed a lot of brick and mortar stores, now they are reshaping them.

They also destroyed the local book shops, they might be able to do the same to local grocery stores.

 

[MichaelWinicki]

Doubt anyone is "convinced". No one knows what their plan is, I sure hope they have one.

There is something interesting about this thing coming full circle. Amazon basically killed a lot of brick and mortar stores, now they are reshaping them.

They also destroyed the local book shops, they might be able to do the same to local grocery stores.

No... I don't see grocery stores going way. Too wide a variety of products. Too many price points. And the competitors in the grocery business are in it for the long haul. In addition there are new competitors coming in that has serious money behind them (Lidl) and another that has been here a while (Aldie) who also has big resources behind them.

The Whole Foods customer is more like the type of customer Amazon already has, the "Prime" customer. They aren't taking the type of customer who grocery shops Wal-Mart or Aldie's or Lidl's for that matter.

Finally Whole Foods has been getting battered by new Organic chains and store like Aldies that is quickly adding organic sections.

Bottom line... This is going to be very interesting.

 

[viman96]

Amazon is way more than their online store. Their hosting services is a huge part of their business model. The Whole Foods purchase could be a cool service addon for them and would use it if the prices are not crazy.