06-16-2017, 11:18 AM | #1 |
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Amazon buys 430 B&M locations
They're upscale supermarkets, as a "bonus".
What they bought is the Whole Foods Market chain of natural/organic supermarkets. Average size is 40,000 sq ft, the biggest 80,000 so there should be enough space to host AmazonBooks mini (and not so mini) stores. Plus lockers. https://en.m.wikipedia.org/wiki/Whole_Foods_Market Here’s ZDNET’s report, with pretty pics and all. http://www.zdnet.com/article/amazon-...96500774529668 Essentially, it is a marriage of convenience: Whole Foods was looking to expand into digital, Amazon was looking to expand into B&M groceries. Now Whole Foods saves the money they needed to spend, moves to AWS to save operating costs, and most likely joins Prime. Given their upscale target market, I wouldn’t expect a big difference in listed prices but they’ll probably offer a flat discount to Prime members. Amazon also gains another 431 facilities in the US, Canada, and the UK for same day delivery. Plus another 90,000 employees. Whole Foods has been profitable as a standalone so it’s easy to see why Bezos is keeping the management team in place. If nothing else to see what they can do with Amazon resources behind them. They were planning to close 9 stores but now I’m thinking they may pivot towards expansion. As ZDNET says, this is going to be interesting. Not least because Walmart has been targetting organic as a way to move upscale. https://en.m.wikipedia.org/wiki/Whole_Foods_Market I don't know if Whole Foods sells books but since AmazonBooks targets the same general demographic it would be a natural combination. Last edited by fjtorres; 06-16-2017 at 02:47 PM. |
06-16-2017, 12:47 PM | #2 |
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None here.
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06-16-2017, 12:54 PM | #3 |
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This has little or nothing to do with books. It has to do with making Whole Foods customers Amazon customers, by expanding AmazonFresh's convenience to Whole Foods customers (and making Whole Foods customers out of Amazon customers). And eventually, drone delivery.
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06-16-2017, 01:58 PM | #4 | |
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Quote:
They do everywhere I've lived. And AmazonBooks are small enough (3000 sq ft for the one that just opened in NJ) to fit inside a WFM. They also target the same upscale customer base. I'm betting the synergy is obvious to ignore. |
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06-16-2017, 06:02 PM | #5 | |
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Phase three is Amazon purchasing one of the chains that has a strong mall presence. The idea being to include an "Amazon Catalog Store" for product delivery/returns. The rest of the space will be for products that are either the most profitable, or most popular in the specific category, with a product turnover of 100 times per year, being the minimal acceptable performance. |
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06-16-2017, 06:11 PM | #6 |
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Once upon a time, all employees at Bread & Circuses had to fill out SEC required paperwork, every time they bought, sold, or otherwise acquired stock in the company, or any of its vendors, or suppliers, because, under SEC rules, all employees meet the criteria for "insider Trading". The specific example being the guy that works part time, and never sees any other employees, because he cleans the bathrooms and mops the floor at 3 AM.
Have SEC rules changed since then? Did Bread & Circuses change something when Whole Foods was created, or later when the parent become B&M? If that hasn't changed, then it might become a huge stumbling block in the acquisition. |
06-16-2017, 09:23 PM | #7 | |
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I am guessing that if it was stocks, the employees were the last to know. Two big companies merged last year, the employees of at least one company only found out after Yahoo broke the news. |
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06-17-2017, 02:02 AM | #8 |
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All I think of when I see/think Amazon B&M stores is that I will end up paying sales taxes on my Amazon purchases.
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06-17-2017, 09:41 AM | #9 |
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Most people already do, if they have a presence (warehouse) in their state. It doesn't even need to be a store to result in sales tax being collected.
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06-17-2017, 10:58 AM | #10 | ||
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https://www.fastcompany.com/26671/whole-foods-all-teams Quote:
Consider that, a big company is likely to be, in some measured, supplied by most other big companies. For example, Whole Foods probably buys vehicles from multiple large auto-makers, probably has an IBM mainframe, probably buys some Mac computers, at least for specialized headquarters uses, probably deals with multiple banks, offers plans from multiple for-profit health insurers, has people in headquarters with authority to make small web purchases from Amazon and even WalMart, etc. |
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06-17-2017, 02:19 PM | #11 | |
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Whole Food is mostly devoted to fresh and health and isn't like most supermarkets that you may be familiar with. There are three different Whole Food stores near me. They have things like cooked food bars, where you can get freshly cooked foods to take home. They have a lot of fresh fruits and vegetables, a really nice butcher's and seafood. It's the go to place if you are having a cook out. They have a really nice bakery and coffee shop as well, with tables and booths to sit and eat in. The one closest to me even has a beer growler booth. I think the synergy here is that Amazon is looking to get into the food delivery business, rather than Amazon looking for ready made store fronts. |
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06-18-2017, 04:29 AM | #12 | |
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Consider the difference between a company, in which the part time night porter knows the writing is on the wall, because they have personally examined the internal company financials, and an employee who first knew of financial issues with the company, the day the facility they worked at was closed by the company, with all employees laid off. |
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06-18-2017, 05:02 AM | #13 |
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The Whole Foods near me used to be a Borders. Funny to think it will now be an Amazon B&M store.
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06-18-2017, 07:38 AM | #14 |
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06-19-2017, 11:53 PM | #15 |
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