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re: Amazon buying Whole Foods
Posted on 6/16/17 at 9:44 am to lynxcat
Posted on 6/16/17 at 9:44 am to lynxcat
I was eating at Whole Foods in the galleria yesterday with a colleague and we were talking about Whole Foods growth limits and what they were going to do going forward. Turn on CNBC this morning to this bomb. Crazy. 
0
Posted on 6/16/17 at 9:47 am to mule74
What does this mean for hello fresh and blue apron?
Posted on 6/16/17 at 10:10 am to Paul Allen
:well,bye: meme
Posted on 6/16/17 at 10:12 am to lynxcat
quote:
This is as much about the distribution opportunities. Amazon Prime Now just got a massive shot in the arm.
I wouldn't be surprised if they also roll out the Amazon Go store technology to Whole Foods locations, allowing them to cut way down on employment costs. There are some definite synergies here
Posted on 6/16/17 at 10:24 am to Paul Allen
quote:
What does this mean for hello fresh and blue apron?
Those two are pre packaged meals to prepare sent with recipes. Not sure how it would affect them that much, at least in the short term.
Posted on 6/16/17 at 10:31 am to tedmarkuson
You employed by a grocer? Because it sounds like someone shite in your coffee this morning.
Amazon will evolve the customer experience both in B&M and online at a pace that is much faster than the industry has ever seen. Amazon and WMT are rapidly investing in ecommerce and WFM just plays right into Amazon's ability to compete online. I love the change in the industry and I'm surprised by just how fast these massive companies (even WMT) are moving.
Amazon will evolve the customer experience both in B&M and online at a pace that is much faster than the industry has ever seen. Amazon and WMT are rapidly investing in ecommerce and WFM just plays right into Amazon's ability to compete online. I love the change in the industry and I'm surprised by just how fast these massive companies (even WMT) are moving.
Posted on 6/16/17 at 10:39 am to tedmarkuson
quote:Did amazon ever deny that?
first it's a tacit admission by amazon that to be a player in the grocery space you've got to go bricks and mortar.
quote:How so? Do you expect them to just jump in and nab a quarter of the market? Amazon, two decades in, is still in explosive growth mode, and you want them to grow faster?
second whole foods is a niche retailer annual sales of 15 billion versus 115 billion for kroger versus 244 billion for walmart and that's just grocery sales. sort of defeats the whole amazon takes over the grocery business narrative now doesn't it?
quote:So? Grocery margins are low, but sales are consistent and recession-proof.
third what's the one big knock on amazon? their margins are too low. so naturally they go into a business that is notorious for their low margins.
This is a huge deal for amazon. They are buying a few hundred "distribution centers" in prime, high-income locations. They will incorporate their methods and technology into the business, and it is basically a guarantee that they will lower costs and grow revenue at these locations.
I would bet my bottom dollar that Amazon will double WFM revenue within 5 years.
Posted on 6/16/17 at 10:49 am to lynxcat
no i don't like the sector at all.
all i'm saying is my three points which are valid
15 billion in annual sales isn't going to move the bar for anything especially the grocery business and that business will always be by it's very nature will be a bricks and mortar business and a low margin one at that for the rest of my lifetime i'm 56. amazon already a low margin business getting into another low margin business doesn't seem like much of a move to me.
we're also not going to have sexbots either.
all i'm saying is my three points which are valid
15 billion in annual sales isn't going to move the bar for anything especially the grocery business and that business will always be by it's very nature will be a bricks and mortar business and a low margin one at that for the rest of my lifetime i'm 56. amazon already a low margin business getting into another low margin business doesn't seem like much of a move to me.
we're also not going to have sexbots either.
Posted on 6/16/17 at 11:02 am to tedmarkuson
quote:Are they?
all i'm saying is my three points which are valid
quote:Did you think the same when Walmart got into the grocery business? WM went from nothing to the leader in groceries in a short period of time. Do you think Amazon knows nothing about how to grow a business?
amazon already a low margin business getting into another low margin business doesn't seem like much of a move to me.
Posted on 6/16/17 at 11:16 am to Korkstand
right now it's three major profit centers are subscriptions services(amazon prime) advertising and cloud services. if i'm a share holder i'd like to see them concentrate on that.
not buying a low margin grocery retailer that hasn't really moved as a stock in over two years.
it's traded in a very narrow range in the low mid thirties for over two years it's had during that entire time a resistance level of 35 and a support level of 29. that's the definition of a dog. "a dog just lies there."
by the way when walmart moved into grocery's it already had 1000 stores it was a no brainer and it's non-union status gave it a huge advantage.
not buying a low margin grocery retailer that hasn't really moved as a stock in over two years.
it's traded in a very narrow range in the low mid thirties for over two years it's had during that entire time a resistance level of 35 and a support level of 29. that's the definition of a dog. "a dog just lies there."
by the way when walmart moved into grocery's it already had 1000 stores it was a no brainer and it's non-union status gave it a huge advantage.
This post was edited on 6/16/17 at 11:22 am
Posted on 6/16/17 at 11:19 am to Korkstand
How is Amazon going to use the brick and mortar Whole Foods location for distribution? Someone convince me of that? I have not shopped there a ton, but I have one just blocks from my house and they don't have all kinds of empty space. They are fairly small, I don't see warehousing all kinds of crap or empty truck bays?
I personally see this more as others have said in the Hello Fresh and Blue Apron competitor, delivering fresh and high end food to consumers. They could join in distribution with Whole Foods and maybe use Whole Foods brand foods?
I personally see this more as others have said in the Hello Fresh and Blue Apron competitor, delivering fresh and high end food to consumers. They could join in distribution with Whole Foods and maybe use Whole Foods brand foods?
Posted on 6/16/17 at 11:40 am to baldona
Think I would have rather seen them buy someone like a Sears where they could basically operate as a mini-DC. Is the end game here to integrate WFM with amazon food delivery? I dk. I am not sure the average person wants their food delivered to them although that sector is certainly growing.
I also could be way off here but I'm not sure if the average WFM shopper will like them being owned by Amazon? I think some of the appeal was that it is a niche specialty store
I also could be way off here but I'm not sure if the average WFM shopper will like them being owned by Amazon? I think some of the appeal was that it is a niche specialty store
This post was edited on 6/16/17 at 11:43 am
Posted on 6/16/17 at 12:17 pm to rocket31
Thanks
Posted on 6/16/17 at 12:38 pm to ynlvr
Time to look at some of the other grocers' stock. Rush in when there's blood in the water.
This post was edited on 6/16/17 at 1:48 pm
Posted on 6/16/17 at 12:55 pm to tedmarkuson
quote:Hundreds of grocery stores is going to add a ton of value to their subscription services. Plus as a shareholder why wouldn't you want them to follow in Walmart's footsteps?
right now it's three major profit centers are subscriptions services(amazon prime) advertising and cloud services. if i'm a share holder i'd like to see them concentrate on that.
quote:WFM was missing a lot of things that AMZN can provide.
not buying a low margin grocery retailer that hasn't really moved as a stock in over two years.
quote:Well, it's above that range as of today.
it's traded in a very narrow range in the low mid thirties for over two years it's had during that entire time a resistance level of 35 and a support level of 29. that's the definition of a dog. "a dog just lies there."
quote:Amazon just bought 400+ stores. But why was it a no-brainer for Walmart to enter the grocery business, but not for Amazon?
by the way when walmart moved into grocery's it already had 1000 stores it was a no brainer and it's non-union status gave it a huge advantage.
Posted on 6/16/17 at 1:02 pm to baldona
quote:They won't use them for warehousing stuff, they'll just use them for groceries. And I think AMZN will try a few different things. I think obviously they will try their Go idea, where customers walk in, grab what they want, and walk out, with payment handled behind the scenes. They will likely also try a pick-up model, and also a delivery model. Maybe a Prime service or an extension to their subscribe-and-save service where you place standing orders that get filled on your schedule, then they can deliver more than just non-perishables. Or for a pick-up service, just shop online, then wait for the notification that your stuff is ready to be picked up at the drive up location. With these models they can fit a lot more inside the stores since there won't be customers inside.
How is Amazon going to use the brick and mortar Whole Foods location for distribution? Someone convince me of that? I have not shopped there a ton, but I have one just blocks from my house and they don't have all kinds of empty space. They are fairly small, I don't see warehousing all kinds of crap or empty truck bays?
It's just the next logical step in Amazon's strategy to deliver anything to anyone as quickly as possible.
Posted on 6/16/17 at 1:06 pm to hiltacular
quote:Hm, I think there's a lot of overlap in customer base here.
I also could be way off here but I'm not sure if the average WFM shopper will like them being owned by Amazon?
Posted on 6/16/17 at 1:16 pm to ynlvr
I just bought Amazon three days back. hopefully i get lucked out
Posted on 6/16/17 at 1:24 pm to tedmarkuson
quote:
right now it's three major profit centers are subscriptions services(amazon prime) advertising and cloud services. if i'm a share holder i'd like to see them concentrate on that.
IMO, the end game here is not for them to be in the grocery business, but to prove the Amazon Go model works for retail (starting with grocery) and license that tech to all major retailers. Amazon Go could probably be compared to what AWS was ten years ago.
This post was edited on 6/16/17 at 1:25 pm
Posted on 6/16/17 at 9:45 pm to TigerRob20
For those of you invested in WFM stock, would you advise selling or holding on to it? Asking for my SO. Says it went up 38% today
Let it be known, I know nothing about stock.
Let it be known, I know nothing about stock.
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