MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Ex-Amazon Exec Explains What Bezos Could Do With Whole Foods

LewisBraham
in Off-Topic
Interesting: https://thestreet.com/story/14229609/1/ex-amazon-exec-explains-what-bezos-could-do-with-whole-foods-and-other-deals-that-might-happen.html

The good in my opinion:
Amazon is expected to "delight" customers with a transformed Whole Foods shopping experience by adding technology updates, starting a grocery delivery or pickup option, and by potentially lowering the prices of food in Whole Foods, which is often the subject of criticism for its higher prices. Amazon will also "absolutely" change the pricey, organic food inventory that Whole Foods is known for to be more like the healthy, but reasonably-priced food seen in Wal-Mart Stores Inc. (WMT) and Kroger Co. (KR) , Ladd said. At the town hall meeting with employees in late June, Whole Foods CEO John Mackey said the supermarket will keep its food quality standards but that the combined company could create other "formats" that won't be branded as Whole Foods and won't meet its standards.
The bad:
At this point, Walmart's best option is to divest Sam's Club and acquire Costco Wholesale Corporation (COST) , he said. Together, Walmart, Jet.com, which Walmart acquired in August 2016, and Costco would make a worthy competitor to Amazon, he said.
And:
Potential future acquisitions for the ever-expanding Amazon giant includes Bodybuilding.com, L Brands Inc.'s (LB) Victoria's Secret, L.L. Bean and REI, Ladd said.
I really hope Walmart does not acquire Costco and Amazon does not acquire L.L. Bean and REI.

The unpredictable:
Another way Amazon is expected to surround its customers is by becoming their go-to pharmacy. In May, Amazon hired a business lead to advise it on how best to go after the $400 billion pharmaceutical market, CNBC reported. But after buying Whole Foods, Amazon can expand into the pharmacy business faster than previously expected because it can use the retail locations as a place for customers to pick up prescriptions, Ladd pointed out.
Target and Kroger's best option to stay competitive is to merge, he said. Just as Target turned to CVS (CVS) for help with its pharmacy business, Target needs to turn to Kroger for help with its grocery business. Meanwhile, Kroger can't compete as a standalone grocer while other companies like Walmart and Amazon can offer the complete retail experience with the option to purchase electronics and other items in the same location.
Most of the more interesting stuff is on the second page of the article.

Comments

Sign In or Register to comment.