Domenica, 22 Luglio, 2018

Amazon is already heating up Charlotte's grocery competition

Amazon is already heating up Charlotte's grocery competition Amazon is already heating up Charlotte's grocery competition
Parmenio Sano | 28 Agosto, 2017, 21:41

The discounts ranged from about 6 percent on the rotisserie half-chicken to about 33 percent on organic apples. Shareholders voted yes on Wednesday and the deal cleared Federal Trade Commission review on Friday. Additionally, the article pointed out that Morgan Stanley believes Amazon has the room to cut prices between 4 to 8 percent, noting Whole Foods had 34 percent gross margins and 5.5 operating margins in 2016.

With the new details, Amazon is revealing some of its goals for this acquisition - including gathering customer information from Whole Foods' clientele. Shoppers are paying attention.

Integration of the two companies will also mean Amazon customers will be able to buy Whole Foods' private label products through its website and local grocery delivery services. Do Google, Amazon, and Walmart just want to free Americans from the chore of grocery shopping?

"That's been the biggest boondoggle around Whole Food's neck for years", Lempert said of the supermarket's high-price reputation. She was thinking about that this morning, but said she would venture into the store aisles soon. Amazon's shocking $13.7 billion takeover of the upscale grocer will increase competition in fast-growing markets like Charlotte, thanks to lower prices and new technology, experts say. Orange signs for the marked-down items read "Whole Foods + Amazon".

Organic large brown eggs - $3.99 per dozen, a cut from $4.29.

KeyBanc's Brent Bracelin reiterates a Sector Weight rating on Amazon shares, writes that his survey of a "basket" of 13 items shows a 22% price decline from before the deal's closing, on things such as almond butter, organic avocados, and " responsibly farmed tilapia".


Whole Foods co-founder and CEO John Mackey said the market has been on a mission to bring the highest quality food to customers. Amazon could have chosen to team up with Walmart's biggest grocery competitor, Kroger, who controls 7.2 percent of the grocery market share. The company also will add special pricing at Whole Foods stores for Prime members.

The Kemps, a couple from Newark, said that it was their first time at a Whole Foods Market. Meanwhile, Whole Foods' store locations, where some 470 stores are in North American and the United Kingdom, gives Amazon a strategic way to enhance its fulfillment initiatives. It's a tricky balance that Amazon itself seemed to acknowledge in its statement.

Whole Foods has 470 stores around the world, including almost 450 in the United States.

The downtown Los Angeles Ralphs was selling conventional avocados for $1.99, versus $1.49 at Whole Foods. Whether Amazon can convert those value-seekers into long-term customers will be the challenge, Barthashus said.

Those moves, along with its aggressive curbside pickups for grocery orders, has helped the giant retailer post its best growth for food sales in the last five years for its most recently ended quarter.

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