CNBC reports AMZN is buying Whole Foods. We have been assimilated. What will they buy next?
And linking Whole Foods with Amazon Prime in thos markets with two hour delivery.
That was my first thought, @NoVADad99, when I heard/saw the news this morning. That this moves them easily into the food delivery service. Hope they lower the prices too. Whole paycheck was too expensive…
It will be interesting to see how this plays out, but I am not all that surprised. Amazon has been looking to get into the grocery business both online ordering and retail, and Whole Foods was in a bind, they are an expensive provider of ‘healthy’ foods and for a long time this gave them a unique market with high margins, but that has changed, supermarkets, even Costco and Walmart, are offering organic products (and more every day), which is taking away some business (not all of the people who shop there do so because of the cachet of shopping at whole paycheck, and given cheaper options will take it), and now European chains like Lidl and Aldi are coming to the US with a high quality/lower cost model that is threatening them. Meanwhile, Whole Foods has been under pressure from investors, especially hedge funds and the like, to boost the stock price and to keep the margins on their products high, so it doesn’t surprise me they sold to Amazon.
Amazon is buying a brand, and there are some things I suspect they are banking on. One is that because Amazon is known for being patient, they could take over Whole Foods, cut prices to face the competition, and even if they take losses doing so their model allows for that (think about the fact that Amazon existed for so many years and didn’t make any money, yet their stock prices were high). It also may allow incorporating the local foods movement more easier, with the way Amazon itself is set up (think about it, online you buy not just stuff Amazon sells but other companies products), given the way Amazon is you are cutting out the standard supermarket crap where they buy from only certain co-ops and getting into them is impossible, locally sourced farms could likely deal a lot easier with Amazon in getting their products into local whole foods stores, because Amazon cuts out the middlemen and wholesalers and co-ops that favor big agribusinesses and the like. Whole foods also could be an outlet for the organic products Amazon already carries, could allow for the Whole Foods stores to carry some of those products, or also act as a delivery point, too.
Amazon has been talking about making a bigger push into the food end for awhile. This stock has been a great holding. Just bummed I sold WFM last year after some weak performance.
Be interesting to see what this does to Kroger et al, WFM was already anti-union and Amazon will be even more staunchly so. Amazon’s investments in automation might completely change the economics of grocery stores.
Next - Amazon buys CVS or one of their competitors. Amazon is already trying to get into the pharmacy business:
http://www.cnbc.com/2017/05/17/cvs-shares-slip-after-report-amazons-getting-into-pharmacy.html
I know I am the odd duck here…but I seldom shop,at Whole Foods…and I don’t have Amazon Prime…so this will have little impact on me.
However, the Whole Foods organization…their training, stores, even building of new stores was an incredible organization (my husband did work with them). I’m hoping Amazon can continue this…but I’m not hopeful since brick and mortar stores are not their thing.
Resistance is futile.
Thumper, they will not shut down the hand that feeds their employees. 
The WF near the Amazon lair in my neck of the woods is BUSY. This is a way for Amazon to get into the higher income bracket consumer segment. Because who shops WF? Not the folks who buy discounted Chinese made cereal.
@BunsenBurner I do NOT expect them to shutter the stores they already have. But I do wonder if there will be any new ones. I doubt it.
It also could be Amazon envisions taking WFM more along the lines of the European markets that are coming in, and a WFM would sell things beyond the food and health items they already sell,similar to Lidl or Aldi that sell clothing for example. It could act as a delivery point for their quick services, someone could choose to pick up their amazon item at a WFM when shopping there.
It is clear Amazon is realizing that the online experience only goes so far and there is still value to brick and mortar stores and this is part of their picking up markets they aren’t in with their online model.
I might be the only person in the burbs that detests Whole Foods. My wife loves it. It’s a bit too pompous for my tastes, and is so busy that I can’t stand going in.
I really like Amazon. Hopefully they don’t force me to frequent our local Whole Foods.
I’d bet money that Amazon will have success with this. WFM was having issues and there is a lot of competition in the grocery business, Amazon’s expertise in streamlined supply chains and inventory control could help them succeed in an industry with slim profit margins and perishability.
We have Wegmans here, no need to ever step foot inside a WF.
Amazon already testing food pickup at their Amazon Go store in Seattle (competition to Walmart’s/Kroger’s food pickup where you order food online and it’s ready to pickup).and there’s talk of more physical stores.
For those of us who have no Whole Foods close by and have Prime, it would be nice to get some Whole Food items with same day delivery using Prime. .Grocery stocks have fallen today with the Amazon acquisition. They’re profit margins are so tight I’m not surprised. Glad I don’t own any grocery stock.
I dislike Whole Foods because the customer service there stinks. No one ever knows where anything is. The lines are slow and long and not well managed. Why at the deli counter are the customers responsible for knowing who is next!!! ( get a number system for goodness sakes!!!)
We have a small local chain with nice products and First Class customer service. Everyone from the manager to the guy sweeping the fooor knows where everything is. More than 2 people in line? Managers get on cash registers and control lines. No tipping drive through pick up. It’s more pricy than the big chain but at least you are getting value for your money
Here’s hoping amazon can bring better service to WFM
Whew…sounds like an ODD Whole Foods you go to. The one we go to…seldom…but we do occasionally…is very well managed, with extremely helpful and knowledgeable people in every department.
My objection to WF is the prices. As my husband used to say “best dollar apple on the planet”.
@ thumper. There are two within a 10 mile radius. Both have terrible customer service. Especially the lines. Today at lunch many friends were discussing this. We are spoiled by our local chain whose customer service is incredible.
And again what is the deal with the no number deli counter. Why should customers be responsible fir keeping track of who came before who??
Our WF’s have different personalities. The one in the suburb has a rude unhelpful one while the one in
the downtown area is super delightful and never misses a step.
I like their 350 brand and their frozen pizza’s are great for using as a base.
Otherwise I do not buy much there. The deli is good but not great.
They allow parking for 2 hours free as long as you buy $10 worth --and allow going
offsite shopping and such in the area. Over 2 hours you pay the parking garage fee.
It is a good deal.
Also, credit to them–they had a weird locked bathroom situations due to the homeless population where you got the code on your receipt. The bathrooms are a flight up. The public complained enough that they put 3 million
into creating nice multi stall restrooms that are open to all and kept spotless.