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Amazon is buying Whole Foods for $14B

UCFKnight85

UCFKnight85

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May 6, 2003
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I personally think WF is a massively overrated, overpriced hipster wasteland, but this is a huge deal for Amazon and the grocer space. Wal Mart and Kroger are down in early trading on this news.

Amazon has been trying to launch their grocery service and now they have a full blown grocery chain under their management. I'll be curious to see how they combine these two together.

I wonder if Whole Foods stores will eventually be converted to Amazon Prime centers whereby you can scan an item to your Amazon account, grab it, and go?

http://www.cnbc.com/2017/06/16/amaz...s-in-a-deal-valued-at-13-point-7-billion.html
 
yea i dont care for whole foods. too expensive for me, but whatever, other peoples money. it will be very interesting to see what they do with this.
 
I listen to a podcast about web development and in an off-topic tangent last week, one of the guys suggested that amazon should do this.

It actually makes sense, since Whole Foods' market-cap has been down (because everyone offers organic food now), but their name recognition/value is still there. Plus Whole Foods gives Amazon a distribution network for Amazon Pantry. I don't know, it's odd on the surface, but seems to make sense timing wise.
 
Some of their bulk grains and beans and stuff isn't too badly priced. Other than their chia seeds. I about died. Local mom and pop shop near the house, Hoover's Market has bulk chia for like $3/lb. At Whole Foods, $13/lb. Prey on fads!!
 
UCFRogerz said:
Some of their bulk grains and beans and stuff isn't too badly priced. Other than their chia seeds. I about died. Local mom and pop shop near the house, Hoover's Market has bulk chia for like $3/lb. At Whole Foods, $13/lb. Prey on fads!!
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Hoover's is pretty nice.

I have found that Trader Joe's and Aldi are much cheaper options.
 
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There is a Publix across the street from my neighborhood. They are the best and I don't shop anywhere else.
 
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They have some good stuff - I like their prepared food section. I wouldn't buy normal groceries there though.

Amazon has been expanding their Grocery delivery service - so this makes sense.
 
cnsaguy said:
If you buy produce and diary products at anyplace other than Aldi you are throwing money down the drain.
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ALDI makes a polarizing impression on people. For me, I think the 25 cent deposit to insure the carts make it back is ingenious. Maybe walking across the parking lot isn't worth 25 cents, but for someone it is. Bottom line the carts make it back without ALDI paying someone. Same deal with the bags.

However, I totally get how some people immediately feel nickel and dimed and instinctively don't trust someone who does that.
 
I live near a fresh market, but never shop there because its way too expensive. i go to the publix across the street instead.
 
UCFWayne said:
I live near a fresh market, but never shop there because its way too expensive. i go to the publix across the street instead.
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Fresh Market has cheap skinless chicken breasts and ground chuck on like Tuesdays and Thursdays, $3/lb I think, or thereabouts. The Fresh market near me closed. boo.
 
SublimeKnight said:
ALDI makes a polarizing impression on people. For me, I think the 25 cent deposit to insure the carts make it back is ingenious. Maybe walking across the parking lot isn't worth 25 cents, but for someone it is. Bottom line the carts make it back without ALDI paying someone. Same deal with the bags.

However, I totally get how some people immediately feel nickel and dimed and instinctively don't trust someone who does that.
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I think their business model is incredible. I don't mind the cart thing because there are no carts left in the lot to hit my truck. The rapid fire checkout is great, I have no desire to have a conversation with a cashier. Get in, get out. That's the way I like to shop. No plastic bags to throw away when I get home, perfect.

That being said I still have not bought raw meat from there and mingling among the poors can be taxing, too.
 
Amazon is Skynet. The twist is going to be when the CEO of Amazon pulls off his mask and reveals that he is actually the Brazilian rainforest. He has now enslaved us for destroying so much of him.
 
After picking up this recipe at WF lately, hope Amazon will now add more in the future.

pro-tip-if-you-stir-coconut-oil-into-your-kale-22379266.png
 
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UCFRogerz said:
Fresh Market has cheap skinless chicken breasts and ground chuck on like Tuesdays and Thursdays, $3/lb I think, or thereabouts. The Fresh market near me closed. boo.
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Yeah, Tuesday is the day to hit Fresh Market. Their chicken breasts are HUGE and fresh daily ground chuck also only at $2.99 make the trip worth it. (I have no idea who shops there on the other 6 days)
 
Fresh Market is par of the walking dead, they have a lifespan and it's not too long. They have closed stores all over the place. As for Whole Foods, well once again there was only so much they were going to be able to do. Grow or die, that is the moto in the grocery world and Whole Foods was running out of growth opportunity. They were in the infill phase of their growth and were now putting stores in B and C locations for them and it's expensive to do that.

As for what this means for Amazon, no idea should be interesting to watch. Knowing that Amazon will have brick and mortar locations to pay for now should make things interesting. Running a grocery store is not easy, the margins are low and the occupancy costs and labor can be high. Those are things they are not familiar with, the tell tale sign will be who from Whole foods sticks around and for how long.
 
UCFRogerz said:
Fresh Market has cheap skinless chicken breasts and ground chuck on like Tuesdays and Thursdays, $3/lb I think, or thereabouts. The Fresh market near me closed. boo.
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Or you can go to Walmart Neighborhood Market for 1.99/# boneless skinless chicken breasts everyday of the week.
 
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This probably means an expansion of PrimeNow and is likely somewhat connected to the new Amazon warehouse going in just south of the airport next to Lake Nona. Expanded footprint with quick delivery to areas that would buy whole foods like items. Yes please.
 
Great2BAKnight2 said:
This probably means an expansion of PrimeNow and is likely somewhat connected to the new Amazon warehouse going in just south of the airport next to Lake Nona. Expanded footprint with quick delivery to areas that would buy whole foods like items. Yes please.
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So basically peapod.
 
Seems like a poor decision IMO unless they plan on stocking everything in these stores and making them into mini distribution/pick up centers. They're buying into the industry that they're making obsolete. $14B is a drop in the bucket to Amazon though. It's like buying WaPo, but I figure that was just a toy for Bezos to spread his propaganda.

This is going to hurt Walmart the most. They have huge distribution centers and huge stores, way too much overhead. There are six or seven Walmarts within 20-30 minutes from me and I live 8 miles from the nearest town.

Publix seems to be oversaturating themselves as well but it seems they're getting into the RE game too and buying/building all the centers they're in so they're at least diversifying a bit.
 
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Publix and Walmart have already started into the grocery delivery biz. Shipt is a start-up that is also doing that. Grocery stocks took a shit today as a result, so they should be a good buy once investors figure out that Amazon won't turn a profit on this either.
 
I read an article yesterday that summed it quite well. "Amazon wants to become Wal-Mart before Wal-Mart becomes Amazon".
 
Bob the Knight said:
Seems like a poor decision IMO unless they plan on stocking everything in these stores and making them into mini distribution/pick up centers. They're buying into the industry that they're making obsolete. $14B is a drop in the bucket to Amazon though. It's like buying WaPo, but I figure that was just a toy for Bezos to spread his propaganda.

This is going to hurt Walmart the most. They have huge distribution centers and huge stores, way too much overhead. There are six or seven Walmarts within 20-30 minutes from me and I live 8 miles from the nearest town.

Publix seems to be oversaturating themselves as well but it seems they're getting into the RE game too and buying/building all the centers they're in so they're at least diversifying a bit.
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Publix is not oversaurated, they are an absolute beast. I have two stores within 3 miles of my house and both have grown Year over Yesr for 5 years straight.

The fact that I can get to a publix from my house in 5 minutes or less is a guaranteed for them that they get a lot of my business. And they do.
 
UCFKnight85 said:
Publix is not oversaurated, they are an absolute beast. I have two stores within 3 miles of my house and both have grown Year over Yesr for 5 years straight.

The fact that I can get to a publix from my house in 5 minutes or less is a guaranteed for them that they get a lot of my business. And they do.
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They are over saturated but it's by choice. Good luck to any competitor that tried to find better real estate.
 
Bob the Knight said:
$14B is a drop in the bucket to Amazon though. It's like buying WaPo, but I figure that was just a toy for Bezos to spread his propaganda.
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Bezos is an Obama altough his origins aren't as murky, Bezos holds the same globalist worldview.
Bezos bought the "Washington Post" where He pushes His sjw Libtard, Globalist, Trump hating views, along with attack journalists, like ((Carl Bernstein)). He is obsessed with destroying Trump.
Jeff Bezos made a $2.5 million donation for gay marriage to Washington United for Marriage in 2012.
 
knightsagainstblmandzog said:
Bezos is an Obama altough his origins aren't as murky, Bezos holds the same globalist worldview.
Bezos bought the "Washington Post" where He pushes His sjw Libtard, Globalist, Trump hating views, along with attack journalists, like ((Carl Bernstein)). He is obsessed with destroying Trump.
Jeff Bezos made a $2.5 million donation for gay marriage to Washington United for Marriage in 2012.
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Still mad about Watergate?
 
UCFKnight85 said:
Publix is not oversaurated, they are an absolute beast. I have two stores within 3 miles of my house and both have grown Year over Yesr for 5 years straight.

The fact that I can get to a publix from my house in 5 minutes or less is a guaranteed for them that they get a lot of my business. And they do.
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Two stores within 3 miles is oversaturation. It's only a matter of time before it kills them, it's just the nature of business. I'm not hating on Publix. They'll make loads of money while they last. They have a great reputation and excellent customer service and that is worth a lot. I dropped a bag with a six pack of Fat Tire a few months ago and they wouldn't leave me alone. It was 100% my fault and they went and got me another six pack and cleaned up my mess before I had the new beer in my hand.
 
Bob the Knight said:
Two stores within 3 miles is oversaturation. It's only a matter of time before it kills them, it's just the nature of business. I'm not hating on Publix. They'll make loads of money while they last. They have a great reputation and excellent customer service and that is worth a lot. I dropped a bag with a six pack of Fat Tire a few months ago and they wouldn't leave me alone. It was 100% my fault and they went and got me another six pack and cleaned up my mess before I had the new beer in my hand.
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Wrong, it won't kill them they have a real estate strategy that allows them to go harvest assets when operations is done. They are a huge landlord and considering they have over $10 billion in cash reserves, they are going to be fine but their stock is going to take an it hit next quarter.
 
Sir Galahad said:
Wrong, it won't kill them they have a real estate strategy that allows them to go harvest assets when operations is done. They are a huge landlord and considering they have over $10 billion in cash reserves, they are going to be fine but their stock is going to take an it hit next quarter.
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Yes, I know. I mentioned their RE stake earlier. Publix will be fine. They hold and are buying up /building prime properties. Their future is leasing and property management, not grocery.
 
Bob the Knight said:
Yes, I know. I mentioned their RE stake earlier. Publix will be fine. They hold and are buying up /building prime properties. Their future is leasing and property management, not grocery.
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That's good stuff. No other grocery store has higher margins and that is due to the success of their private labels. They will be fine, without them as the anchor, their centers would not be that desirable. They own the real estate because the return on that is higher than keeping money in the bank. Their grocery operations are rock solid, their stock drops because it's based upon peer performance.
 
Publix is bomb. Even though it's more expensive, it's my favorite grocery store for sure. Their private label stuff is quality and their bakery and deli is awesome.

I also love me some Amazon. I don't think Amazon could ever replace my grocery store but it could supplement it. Just like Amazon won't replace my clothing stores. There are just some things I like going to a physical store for.
 
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