Amazon Gets Its Beak Wet in Brick and Mortar – Acquires Whole Foods – IOTW Report

Amazon Gets Its Beak Wet in Brick and Mortar – Acquires Whole Foods

Friday, 16 June 2017, 15:48 BFH Uncategorized 23

Target and Walmart stocks dipped after the deal was made.

Reuters-

“It’s disrupting a number of industries here, and that’s what’s causing the market problems,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Sarasota, Florida.

Amazon shares gained 3.6 percent, making the stock the biggest boost to the S&P 500. Whole Foods (WFM.O) shares surged 30 percent.

The S&P consumer staples sector .SPLRCS fell 1.3 percent, by far the worst performing major sector. The S&P 500 food and staples retailing index .SPLRCFD dropped 4.7 percent.

Grocery chain Kroger (KR.N) was the biggest loser on the S&P 500, down 11.3 percent, while Supervalu (SVU.N) dropped 12.8 percent.

“I would not like to be somebody playing in the grocery space right now,” said Jan Rogers Kniffen, chief executive of retail consultancy firm J. Rogers Kniffen WWE in New York.

ht/ the big owe

23 Comments on Amazon Gets Its Beak Wet in Brick and Mortar – Acquires Whole Foods

  1. I think it’s time Congress got involved with Amazon with a view to reviewing their control of the marketplace as well as their business practices. Alphabet and Facebook could use a look as well. The problem is that the only President who would order something like that is Trump and he’s up to his neck with attacks from the left and leakers from both sides.

  3. One World Government.

    Single Payer HealthCare.

    One World Food Outlet.

    Now, all they have to do is to successfully disarm us all, or leave only 500 million of us to do the work that they don’t want to. I think they’ll try to do both simultaneously.

  5. Time for major Antitrust action.

    Amazon’s already too large. It destroys more jobs than it creates.

    The grocery industry has been a fantastic Capitalist success story. Fairly resistant so far to Oligopoly. Just the right mix of healthy competition.

    Amazon threatens to change all that.
    A national food chain run by hardcore Lefty Bezos? Too dangerous.

  6. WTF does Amazon know about running a grocery store? On the news instantly Walmart, Kroger and other grocery is down heavily. As if Kroger all of the sudden is going to lose all their business to Whole Foods who has been faltering. All retail has been selling off because of the Amazon threat to Brick-n-Mortar when Amazon itself is scooping up physical stores. Now all retail and all grocery is selling off because Amazon can run a retail grocery store better than anyone else? C’mon, Amazon has zero expertise in the industry and suddenly they’re being treated as the ONLY place to buy grocery now when they haven’t done anything other than throw money around. Ridiculous.

    I canceled my Prime membership 3 months ago. Amazon can go screw. I’ve been finding much better deals (20% to 30% off what Amazon charges) going directly to product websites that accept coupon codes and other incentives that Amazon doesn’t.

  10. “going directly to product websites that accept coupon codes and other incentives that Amazon doesn’t.”

    Exactly this. Amazon is almost never the cheapest and I’m not interested in buying a metric ton of one thing to get a ‘good deal’. LOL. I was in the market for some unfortunately pricey Smith & Nephew skin-prep and unisolve, and I didn’t need enough to supply an entire hospital, just for me. But anyway, as for the groceries, I’d rather see what I’m buying at the brick and mortars.
    Whenever possible, go directly to the brand’s website.

  11. Well, I just overheard a conversation of some people in the know, and what grocery stores have yet to crack is the home delivery of food. People have not embraced the drive up variety because they don’t trust others to pick their produce. So, Amazon wants Whole Foods solely for their name because people trust in the quality of the produce and they are gambling that by placing strategic distribution centers around the country that people will turn to them to deliver high-quality produce and other goods.
    The gentleman then said: “Buy stock.”

  12. There’s a store around me called Fresh Thyme. They carry a lot of organics, great produce, grass fed meats. They are pricey compared to a Jewel or Kroger, but far less expensive than Whole Foods. Even with quality merchandise for sale with a staff that keeps everything in tip-top shape, I still find myself rummaging through the romaine, beets, avocados, apples, meats and dairy. Because no matter how good any selection may be, there’s always a better selection. Bad_Brad will get a steak that’s about to turn, mine will be a more fresh kill with milk that doesn’t expire tomorrow and vegetables that aren’t bruised and brown.

    Minimum wage employee who hates his job picking what I consume? No thanks. I’d rather not eat.

  13. @Miss Conduct; I see your point but the problem is that most people are pretty fickle. All it would take is a couple of deliveries with below par produce or meat (or any perishable really) and the customers go back to the supermarket. Amazon/Whole Foods will have this happen guaranteed. I’ve been into whole foods on occasion and their produce was not very good but then neither was the competition at that time meaning they all had to buy below standard because that’s all there was. Frankly, I hope Amazon takes a huge loss on this and quickly so fewer people lose their jobs and humans keep a reason for going out into the world.

  15. TO Miss Conduct

    “Buy stocks”?!?
    Check the P/E.
    Forward P/E 30.6.
    Ticker: WFM.
    Not. Even. Preferred Stocks.
    They got bonds? NOPE, too.

    A-Hole Foods to me.

  16. If your’e thinking about buying stock, I’d wait. Whole Foods stock jumped today close to 30%. Amazon was up 7%. Other Food Chains dropped significantly. I’d buy those stocks. But I suck at the stock market so don’t listen to me.

  19. Wal-Mart is building some kind of Hometown Market about two miles from me and I’m afraid that will put the local grocery store that is one mile from me out of business.

  20. @ eternal cracker

    We love Fresh Thyme, and go to one when we visit our kids. There isn’t one near us though. Oh, their sausages and brats are the best. We have a Whole Foods nearby, but I’d trade it for a FT in a heartbeat.

Comments are closed.

iOTWreport.com ©2024 ----- iOTWreport is not responsible for the content of comments. All opinions in comments are solely the commenter's.