Amazon buys Whole Foods

MichaelWinicki said:
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.
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I agree with you about the Whole Foods customer. As I mentioned above, quality concerns have kept people from ordering online. Who has a better quality rep than Whole Foods?

I don't think this is all about groceries, either. Amazon has been known to be testing deliveries with drones. I think this is also about durable goods distribution. They now own 430 more warehouses and drone launch pads.

In the very near future you will be able to say "Alexa, tell AmazonFresh to bring me a gallon of milk." And it will show up the same day.
 
Trouty said:
If it's half the price, I'm there!

Love Whole Foods, but it's too damn expensive to shop there exclusively.
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Isnt that the truth, the last time I was in there I a bag of those chocolate thumbprint cookies which I devoured. Turns out the bag was like 10 bucks for 12 cookies or so.
 
TheKey said:
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.
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One of the many defining moments in a few companies attempts to be the "end all/be all"

Google
Amazon
Verizon
Etc
 
TheKey said:
Sorry I haven't heard about that. What are the basics?
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as you are probably aware, halliburton, baker hughes and GE have large oil field service divisions.
i think the government block one of the merger with halliburton and baker.
then i think GE is trying to acquire baker.
not sure of details.
figure this may be up your alley.
 
waldoputty said:
as you are probably aware, halliburton, baker hughes and GE have large oil field service divisions.
i think the government block one of the merger with halliburton and baker.
then i think GE is trying to acquire baker.
not sure of details.
figure this may be up your alley.
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The trend in all industries is toward consolidation to gain synergies and scalability to fight off large international companies from china and beyond. It might turn out to be bad for the consumer, but we will have to see. If you can combine two companies and eliminate 20% of the costs of admin, from a business perspective you need to do it. The problem is that many synergies never materialize.

By the way, I have no information and this is not investment advice, but I see great opportunity in the grocery space now. Kroger and Costco are way undervalued and Sprout might be the next to he acquired. If you dabble in the markets you should do some research there.
 
Trouty said:
Right!? :laugh:

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! :)
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Oh my. The only one that we have here that you mentioned is Costco. Never heard of the others.
 
Trouty said:
Right!? :laugh:

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! :)
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I read an article yesterday that said Sprout's is the next takeover target. All the remaining grocers are suddenly cheap after losing 15% in one day thanks to Amazon.
 
Aldi is for me. Small store do not have to wander 3 miles to find something.
Great prices.

It reminds me of way back when. A&P used to have small stores in a lot of towns.
They closed them all in the mid 60's.
 
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