kutthoat5150
Member
Insane that Amazon has grown this large with acquisitions such as Twitch and Zappos only amounting to around $1 billion each compared to Microsoft and Apple buyouts. This is huge for them.
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Amazon to buy Whole Foods for $13.7 billion cash
- Thread starter JimJamJones
- Start date
Cymbal Head
Banned
2017: Amazon to buy Whole Foods
2024: Amazon to buy the whole of food
2024: Amazon to buy the whole of food
Baroquemantic
Member
Wow
One Eyed Willy
Member
For now..
I work for a mega corporation and all we do is acquire other companies throughout the year. The biggest acquisitions always take several years to integrate and align on the business and technical infrastructure-wise. Once these two are complete, the redundancy is weeded out and the eventual assimilation takes over.
It may take 5 years, but Whole Foods will be rebranded and when it does expect some trickle and testing. Like Whole Foods "on the Go!" which will tie into some kind of Amazon-like online shopping experience named the same. From there the snowball is rolling.
Prime Now is a godsend. Enjoy it.
ElBoxyBrown
Banned
What about TVs? I know Amazon sells TVs but don't more people shop for TVs at stores then have them delivered?
Evil Monkey DTT
Banned
Remember when Amazon was a book store?
therealist
Member
Isn't Whole Foods a pretty good place to work for while Amazon is a pretty bad place to work for? I wonder what Whole Foods employees think about this.
GoldenEye 007
Member
How many employees does a typical large grocery store require? Over 100? Maybe more?
Once automation continues to evolve, I could see one of these grocery stores only needing at most a dozen employees - mostly to simply account for shifts throughout the week. A manager or two, some customer service specialists, and technical staff for on-site repairs.
We're not ready for this. I get that it's coming. But we're so unprepared.
Once automation continues to evolve, I could see one of these grocery stores only needing at most a dozen employees - mostly to simply account for shifts throughout the week. A manager or two, some customer service specialists, and technical staff for on-site repairs.
We're not ready for this. I get that it's coming. But we're so unprepared.
xiaxdragon
Banned
amazon is thinking so far ahead of everyone else right now its not even funny.
Every single one of those stores is basically going to become a node now.
Walk into a giant store.....grab the shit you want....and walk straight out without the need of a cashier. No more bullshit 25 minute lines at a walmart that only has 3 lanes open out of 50.
The future for convenience is incredible.....and not only that, they can easily move the cashiers that would have been there to something else in the store to make sure customer satisfaction and also probably working behind the deli providing superior service for fresh meats and cheese.
Shelves and stock still needs to be checked, received and shelved.....100 might even be pushing it for a walmart. There are more floor workers than cashiers. I see at most 4 cashiers open at a time with maybe 2 more at the self checkout. There will still always be most likely 1-2 cashiers on hand in person for those without an amazon account.....so the other 4 would be moved to floor duties, stocking, or deli/cooking
Every single one of those stores is basically going to become a node now.
Walk into a giant store.....grab the shit you want....and walk straight out without the need of a cashier. No more bullshit 25 minute lines at a walmart that only has 3 lanes open out of 50.
The future for convenience is incredible.....and not only that, they can easily move the cashiers that would have been there to something else in the store to make sure customer satisfaction and also probably working behind the deli providing superior service for fresh meats and cheese.
Shelves and stock still needs to be checked, received and shelved.....100 might even be pushing it for a walmart. There are more floor workers than cashiers. I see at most 4 cashiers open at a time with maybe 2 more at the self checkout. There will still always be most likely 1-2 cashiers on hand in person for those without an amazon account.....so the other 4 would be moved to floor duties, stocking, or deli/cooking
RastaMentality
Banned
If amazon gets into selling generic drugs, shit's gonna get even more insane.
you mean fire 99% of them and save money. The 1% will be kept around to make sure people how how it works etc.
Bingo
I don't know how to feel about all of this, I like amazon but competition is good.
Fragamemnon
Member
The reason why the other retailer's stocks are down is because Amazon can keep operating WF without having to put up big profits and just focus on growing the business.
Every other grocery store is having to compete with the Amazon'd WF on price and services while at the same time paying their investors more and more earnings per share.
For Wal-Mart, it's got to be especially terrifying because grocery in their supercenters is a big part of their presence in urban areas and gives people there a reason to go to Wal-Mart instead of Amazon. If Amazon integrates WF into their local logistics then Wal-Mart could find themselves completely locked out of access to the entire quintiles of the population broken out by income. They'd service the rural and poor, and while that's still good business it's not necessarily good growth.
Every other grocery store is having to compete with the Amazon'd WF on price and services while at the same time paying their investors more and more earnings per share.
For Wal-Mart, it's got to be especially terrifying because grocery in their supercenters is a big part of their presence in urban areas and gives people there a reason to go to Wal-Mart instead of Amazon. If Amazon integrates WF into their local logistics then Wal-Mart could find themselves completely locked out of access to the entire quintiles of the population broken out by income. They'd service the rural and poor, and while that's still good business it's not necessarily good growth.
GoldenEye 007
Member
I'm anticipating that the majority of stocking could be automated. But yeah those customer service specialists would easily double duty as cashiers as needed. Same with an on-site assistant manager. The repair people could also double duty as stockers as needed. Still a fraction of the usual amount of employees needed. Just like warehouses/manufacturing that used to employ hundreds on the same shift may now only need a handful to oversee daily operations.
Speaking of Walmart, I will say I have seen some big improvements in their checkout service. They have converted a lot of the express lanes to self-checkout. And they have one or two staff to direct people to the open ones. There are still some manned express lanes plus of course the regular ones, but in the last couple times I've found I had to go there, it's been a much smoother and quicker experience.
Edit: Of course products delivered by self-driving trucks with smart unloading technology that does not need a person aboard.
Hot stock takes:
Amazon: +3.3% to $995.98
Wal-Mart: -6.36% to 74.18
Target: -10.28% to $49.76
Costco: -7.69% to $13.85
Kroger: -13.44% to $21.26
Dollar General: -5.16% to $68.59
SuperValu: -16.22% to $3.15
Sprouts Market: -12% to $19.73
Smart & Final Stores: -14.09% to $9.60
Weis Markets: -7.25% to $47.23
Ingles Markets: -7.71% to $32.30
lol
Amazon: +3.3% to $995.98
Wal-Mart: -6.36% to 74.18
Target: -10.28% to $49.76
Costco: -7.69% to $13.85
Kroger: -13.44% to $21.26
Dollar General: -5.16% to $68.59
SuperValu: -16.22% to $3.15
Sprouts Market: -12% to $19.73
Smart & Final Stores: -14.09% to $9.60
Weis Markets: -7.25% to $47.23
Ingles Markets: -7.71% to $32.30
lol
davepoobond
you can't put a price on sparks
Wow
Ron Mexico
Member
Kroger also just announced poor earnings yesterday. Absolute bloodbath.
I do think there's some potential here but I also think there's a real chance speculators take a bath on these.
D
Deleted member 17706
Unconfirmed Member
Wasn't expecting that. I wonder if this will affect their Amazon Fresh offerings at all.
Tom Nook
Member
Robot Pants
Member
This'll be huge for them
My god
My god
I used to work for WF years ago. I had a regular customer that works for Amazon and he would tell me all the projects he was doing from drone deliveries to Prime Fresh (before it became public).
As a previous poster mentioned, they do think YEARS ahead of everybody. Rather than taking decades to build grocery stores, just build the foundation WF has.
As a previous poster mentioned, they do think YEARS ahead of everybody. Rather than taking decades to build grocery stores, just build the foundation WF has.
FalsettoVibe
Member
Whoa..
HomerSimpson-Man
Member
But Whole Foods is expensive as hell. I don't shop there if I want to keep my food budget in check. Would this theortically lower their prices?
metalslimer
Member
Yeah I doubt they continue to try and compete exclusively in that same expe side market.
This is huge. This acquisition accelerates automation in the grocery chains, because they have to in order to complete with Amazon. Currently, Amazon Fresh works by delivering food to your door, which doesn't always work as well in more urban densely populated areas. What this sudden increase in physical presence allows Amazon to do is allow customers to literally shop online and just pick up their groceries instead, or at the very least allows customers to take advantage of their Amazon Go model where you shop the store and literally walk out. They could roll out that service rapidly with Whole Foods footprint in short notice without monthly fees associated with Amazon Fresh. They also can service as Amazon hubs for package pickups. No cashiers involved.
No other grocery chain has the infrastructure to compete with that (yet). That's disruptive.
No other grocery chain has the infrastructure to compete with that (yet). That's disruptive.
Theres a 2000AD comic about supermarket wars, where civilians take up arms against other shoppers in the name of their supermarket.
GoldenEye 007
Member
Some have been implementing online shopping and in-store pickup. That alone isn't new. Kroger is doing it. Publix is playing around with some stuff - even delivery I think. And other chains like Wal-Mart have been rolling out in-store pickup.
But yeah, Amazon's technology and supply chain is unmatched there. And they can use it for not only groceries, but also other products - which traditional stores can't do. Their app and site is slick enough and their Alexa technology makes things even easier versus regular stores. They'll have so much less overhead from labor alone.
therealist
Member
I don't think Walmart or traditional grocers like Kroger will be hugely impacted by this. They still have way more stores than Whole Foods has, and they don't service the same customers anyway. Amazon would ruin the Whole Foods brand if it tries to change it into a pureplay competitor for Kroger, as that would mean replacing many niche expensive products to generic cheap items.
Amazon is going after a niche, high income, high margin market with Whole Foods. If they truly wanted to take down normal grocers, they could have purchased Kroger.
killertofu
Member
This excites me as a consumer but scares me as a citizen
clearacell
Member
good investment, whole foods has been growing and will continue to grow as we start to be more afraid of our dwindling health, we will start seeking healthier food.
Permanently A
Junior Member
That's fucking scary actually
GoldenEye 007
Member
Yup would be logical. Don't they even tie product access for certain items to Prime membership?
slightconfuse
Banned
Soon everything will be Amazon
I don't see why this is having such a big impact on stocks like Walmart And SuperValu
They're kind of a different market, right? If I want a big box of pancake milk and a gallon of milk, I'm not going to whole foods for it. They'll still be a niche store because of their small footprint
They're kind of a different market, right? If I want a big box of pancake milk and a gallon of milk, I'm not going to whole foods for it. They'll still be a niche store because of their small footprint
GoldenEye 007
Member
Kroger is massive, though. Doubt they could just use cash to purchase them. Kroger does have tons of brands. Some are whatever basic quality. Some are higher end - so this certainly would eat into those brands.
HEB has a high end brand in Central Market, which would be directly affected. So regular grocery store companies certainly do have a lot to worry about here even if it doesn't immediately affect their full portfolio of store brands.
billy beane
Banned
Amazon already delivers fresh produce with Fresh. It's actually pretty awesome I was doing all my grocery shopping that way for a while. I could see Whole Foods tying in with that.
Yeah, I use Fresh at times if the prices are right for what I want to get and the 5% back with use of my Chase Amazon card is nice.
Megawarrior
Member
Interesting to watch the growth of amazon over the years.
GoldenEye 007
Member
Lost in this news, WalMart is buying Bonobos. Guess they want to up their clothing game?
https://www.nytimes.com/2017/06/16/business/walmart-bonobos-merger.html?_r=0
https://www.nytimes.com/2017/06/16/business/walmart-bonobos-merger.html?_r=0
TurtleSnatcher
Member
Technically Whole Foods has that service to in some cities. Easy for them to integrate fresh now into this. May end up helping prices on both fronts due to bulk
Darryl M R
Member
I'm wearing a Bonobos shirt right now..I hope this doesn't change much for the company.