Amazon buys 430 B&M locations

[issybird]

Interesting Vox article about where Whole Foods fits in Amazon's strategy and how the acquisition will likely lower prices and hurt the competition.

[ZodWallop]

That's an interesting article. But I'm not sure cutting prices at Whole Foods will really impact other grocery store chains. To me, Whole Foods doesn't really compete with other grocery stores. They seem to be something of an other. Even cutting prices by half or a quarter will still be double the cost for similar items from most other grocery stores.

Cutting prices at Whole Foods too much seems mostly like it would negatively impact Whole Foods, ruining their niche.

I dunno. Maybe my vision is limited.

[fjtorres]

Originally Posted by ZodWallop

That's an interesting article. But I'm not sure cutting prices at Whole Foods will really impact other grocery store chains. To me, Whole Foods doesn't really compete with other grocery stores. They seem to be something of an other. Even cutting prices by half or a quarter will still be double the cost for similar items from most other grocery stores.

Cutting prices at Whole Foods too much seems mostly like it would negatively impact Whole Foods, ruining their niche.

I dunno. Maybe my vision is limited.

No, not limited at all.
All indications are the Amazon is buying WFM to keep as is for at least two more years because what they most want from them in the grocery space is their grocery supply chain and expertise to feed into AmazonFresh expansion.

WFM is netting $500M a year in profits as is. It doesn't need massive retooling in its own space. It does need to improve and expand in the online arena which is something Amazon can supply most effectively.

Me, I think that, other than online, the best way to boost WFM store profits is to dedicate 5-10% of their floor space to Amazon goods and services targeted at their existing customer base. (Kindles, Echoes, Fires, and yes, books.) And, since WMF doesn't already have a customer loyalty program, bringing in Prime is pretty much a given.

Some price cutting (tied to Prime) might make sense. Major across the board cuts don't. Their main challenge is keeping their affluent customers, not going after somebody else's.

[tomsem]

They will boost profits by increasing AmazonFresh business. I think a lot of WFM customers would appreciate having home/office delivery instead of having to make a special trip to the stores.

There is also chatter about 'firing the cashiers' like the Amazon Go concept store, but I don't know how that would work: how would you weigh produce wirelessly?

[fjtorres]

Well, you could sell the produce in pre-packaged counts or have a dedicated counter for bulk produce with an employee or two.

But the fact is that all the whining about "Amazon is going to be the end of cashiers" is unfounded speculation and fear mongering.

https://www.nytimes.com/2017/06/17/u...-cashiers.html

Not that people shouldn't be encouraged and helped to move beyond those kinds of entry level jobs but that kind of transition is still a decade or more away. Before that. B&M retail will need to finish rightsizing and stabilize at a profitable size.

[Cinisajoy]

Originally Posted by fjtorres

Well, you could sell the produce in pre-packaged counts or have a dedicated counter for bulk produce with an employee or two.

But the fact is that all the whining about "Amazon is going to be the end of cashiers" is unfounded speculation and fear mongering.

https://www.nytimes.com/2017/06/17/u...-cashiers.html

Not that people shouldn't be encouraged and helped to move beyond those kinds of entry level jobs but that kind of transition is still a decade or more away. Before that. B&M retail will need to finish rightsizing and stabilize at a profitable size.

Walmart already has self checkout with the ability to do produce. No cashier necessary.
Is the shopper able to touch the produce and the computer screen? If yes, then a second person is not necessary.

Slightly off topic but here is an interesting thought. Here it is illegal to buy beer from midnight to noon on Sunday. I saw at least 5 people try to buy beer at the self checkout before noon. Note, the computer calls for a human as soon as beer and wine is scanned. Unless it is cooking wine.

[ZodWallop]

Originally Posted by Cinisajoy

Walmart already has self checkout with the ability to do produce. No cashier necessary.
Is the shopper able to touch the produce and the computer screen? If yes, then a second person is not necessary.

Amazon Go self checkout is the opposite of the self checkout you see in grocery stores now. I also think it's unlikely. But I guess that concept would have a better chance of success in a high-end store like Whole Foods than elsewhere.

Slightly off topic but here is an interesting thought. Here it is illegal to buy beer from midnight to noon on Sunday. I saw at least 5 people try to buy beer at the self checkout before noon. Note, the computer calls for a human as soon as beer and wine is scanned. Unless it is cooking wine.

It wouldn't be so difficult to have the app tell you that you can not purchase booze from midnight to noon.

[ZodWallop]

Originally Posted by fjtorres

Me, I think that, other than online, the best way to boost WFM store profits is to dedicate 5-10% of their floor space to Amazon goods and services targeted at their existing customer base. (Kindles, Echoes, Fires, and yes, books.) And, since WFM doesn't already have a customer loyalty program, bringing in Prime is pretty much a given.

Some price cutting (tied to Prime) might make sense. Major across the board cuts don't. Their main challenge is keeping their affluent customers, not going after somebody else's.

That was my thought.

[Cinisajoy]

Originally Posted by ZodWallop

Amazon Go self checkout is the opposite of the self checkout you see in grocery stores now. I also think it's unlikely. But I guess that concept would have a better chance of success in a high-end store like Whole Foods than elsewhere.



It wouldn't be so difficult to have the app tell you that you can not purchase booze from midnight to noon.

I just thought it was amusing they thought the computer would let them buy beer but the human wouldn't sell them the beer.

[ZodWallop]

Originally Posted by Cinisajoy

I just thought it was amusing they thought the computer would let them buy beer but the human wouldn't sell them the beer.

::Off topic. Sorry!::

Yeah, I'm pretty sure regardless of the day/time the robot will always call a person over for booze purchases.

I'm a teetotaler, but the way they treat liquor sales in Texas makes me really miss California.

[Cinisajoy]

Originally Posted by ZodWallop

::Off topic. Sorry!::

Yeah, I'm pretty sure regardless of the day/time the robot will always call a person over for booze purchases.

I'm a teetotaler, but the way they treat liquor sales in Texas makes me really miss California.

I miss Nebraska or New Mexico.

[MikeB1972]

Originally Posted by Cinisajoy

Slightly off topic but here is an interesting thought. Here it is illegal to buy beer from midnight to noon on Sunday. I saw at least 5 people try to buy beer at the self checkout before noon. Note, the computer calls for a human as soon as beer and wine is scanned. Unless it is cooking wine.

So, cooking wine is OK.

I normally use something fairly rich to cook with - a decent merlot or bordeaux, occasionally, I add it to the food.

[Cinisajoy]

Originally Posted by MikeB1972

So, cooking wine is OK.

I normally use something fairly rich to cook with - a decent merlot or bordeaux, occasionally, I add it to the food.

I use cooking wines but then I don't drink wine so I don't know if they are good or not. I would say don't try this at home if you are used to the good stuff.

[meeera]

What is "cooking wine"? You shouldn't cook with a wine that's not good enough to drink. (Except perhaps rice wine, which is a whole different thing.)

[Cinisajoy]

Originally Posted by meeera

What is "cooking wine"? You shouldn't cook with a wine that's not good enough to drink.

I do believe another term would be cheap wine with a bit of salt added.
Now the red one does make a good marinade for beef.