Domenica, 24 Settembre, 2017

Amazon to close on Whole Foods buyout Monday

Discussion Discussion
Sveva Terracina | 26 Agosto, 2017, 12:50

Whole Foods offering discounted prices on groceries will help fix the organic chain's infamous "Whole Paycheck" image.

"That's the thorny problem Amazon faces: How do you become a low-cost supermarket and still retain that cachet?" said Jeffery Inman, a marketing professor at University of Pittsburgh and president of the Society of Consumer Psychology.

Amazon is known for its swift delivery of goods - and apparently deals as well. United States rivals such as Wal-Mart and Target are all in the organics business now, and shoppers have noticed.

Shares of supermarket giants like Kroger and Costco fell upon yesterday's announcement that the deal between Whole Foods and Amazon is set to close.

Whole Paycheck may sound like a odd term to many people, but it means the same as whole foods.


Amazon believes the future of grocery shopping is online. The company's prices aren't necessarily the lowest across the board. But it will take more time before it becomes clear whether Amazon can successfully expand to an entirely new market. Amazon Fresh is $14.99 a month, and delivers groceries to the door.

Whole Foods products targeted for initial price reductions include apples, avocados, bananas, butter, eggs, farmed salmon and rotisserie chicken. He said: "It's been our mission for 39 years at Whole Foods Market to bring the highest quality food to our customers". In the past, Amazon has challenged Barnes & Noble on books prices.

E-commerce is a hard game to catch up on, and as Amazon builds its Prime paradise, customers may balk at the price of its $60 membership when they can get so much more from Amazon's service.

In addition, Amazon Lockers will be available at certain Whole Foods stores that will allow customers to pick up items ordered online at Amazon.com at their local Whole Foods store or send returns back. That instantly gives the grocer the mother of all store-loyalty programs. As Amazon founder and CEO Jeff Bezos has famously said, "Your margin is my opportunity". One advantage these chains had over Amazon was their brick-and-mortar stores. Whole Foods is now part of the strategy, too.

Amy Klobuchar (D-MN) says she is "concerned" over the speed with which Amazon completed its $13.7bn acquisition of the kombucha-slinging organic money sink. And that's just the beginning. This caused the retail industry to feel the shockwaves of the Amazon effect. They didn't have to wait long. However, some other retailers don't seem to have a clearly defined plan to help fend off this new pressure. The Motley Fool owns shares of and recommends Amazon.

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