Wednesday, 18 October, 2017

Bells Ring For Whole Foods and Amazon

Whole Foods CEO calls deal with Amazon ‘whirlwind courtship Bells Ring For Whole Foods and Amazon
Mae Harvey | 27 June, 2017, 02:48

"I think there's the argument that Amazon acquired Whole Foods for free", he said.

They added: "It is hard to see how this circle will be broken short term and along with increased risks, is leading to reductions to our target prices".

The analysts pointed out that while there remains a fear of Amazon entering the United Kingdom, the food retail sector is likely to remain depressed.

"Kroger would have to pay in stock, and their stock has been hurting", giving them less leverage to get into a protracted bidding war with Amazon, Culpepper said. The reports of Amazon's massive purchase of the upscale grocery store chain seemed to come out of nowhere, but perhaps the acquisition is not as surprising as originally thought.

Whole Foods has already experimented with new formats, including its smaller 365 stores aimed at winning over millennials, who have migrated more to urban areas and tend to be more cost conscious than previous generations. What the online retail behemoth is planning with the Whole Foods deal and its 460 brick and mortar locations throughout the US, Canada, and the United Kingdom is anyone's guess, but as Business Insider points out, this may be a pivotal step in the future of grocery shopping.

Turner noted that Whole Foods has large store footprints in most of GrubHub's key geographies, including California, Massachusetts, Illinois and NY. "More importantly, it puts refrigerated distribution within 10 miles of probably 95 percent of Prime members". But it has been struggling to find a profitable model. The service, which is offered to the company's subscription Prime members for a monthly fee of $14.99, is available only in about 20 US cities. Its biggest acquisition prior to the Whole Foods deal was that of Zappos.com for $1.2 billion.

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I think that- I just wish I could tell you more. "People don't know what they're having for dinner when they leave the office at the end of the day and don't have it in the refrigerator".

That was feeling of Taylor Malooly, 19, a University of Texas student at Whole Foods in Austin, who said a Whole Foods delivery service would have to be fast if he were to try it.

Shoppers have plenty of options. Some Whole Foods fans may oppose the move as they would rather buy produce from a brick and mortar location than a website.

They'll be dealing with "integrating it and really attacking what is the biggest retail market in the US, which is grocery", Blackledge said.

And shoppers are a picky bunch, saying they would be looking for the best prices, good quality and convenience when it comes to online food delivery. Industry observers have said that Amazon may add a selection of discounted, non-organic food to distance the chain from its "Whole Paycheck" nickname.

In February, a source told The New York Post that "Amazon will utilise technology to minimise labour" at new, machine-automated supermarkets that could operate with as few as three employees.

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