Amazon — Whole Foods

2017 June 18
tags:
by drdog09

… Deal made in Heaven?

The losers:

* Employees. There WILL be a reduction in force by various means.
* Distribution Centers. There will be fewer of them for Whole Foods to gain ‘efficiencies’. The only ones to remain being those whose location would have had a Amazon center soon.
* Kroger, Publix, et. al. If someone is in the generic food game their world just moved. Integrated service centers will be the game going forward. Lack that marriage and you are at a disadvantage.
* The Feds. Amazon will figure out how to drop the tax rate on its acquisition. They lose for another reason — automatic prepping. With fewer local retailers when one drives further away to do one’s shopping one will tend to buy more for fewer trips. That leads to bulk buying. Before you know it, you have the prepping bug.

The winners:

* Whole Foods. They will acquire proven automation at a discount from Amazon parent.
* Small niche players who cater to specific cultural segments. Like say a Somali import store in Dearborn.
* Costco and Sams. They will need to become more efficient natch. But when the populace is conditioned that the food is only available at supercenters then justifying shopping at a warehouse club is a breeze.
* Amazon of course. Imagine if you will that Amz were to place a ‘drop zone’ store next to every Whole Foods. You order it, its sent to the drop zone for pickup. Oh, and since I am here let me pick up a carton of high priced milk, saves me the trip.

Much of this counter to the current thinking. If you read the article Cramer is screaming groceryageddon. Personally I think Cramer is wrong. Prices will fall in the short term especially since outfits like Lidi will sell at below cost for a while to gain share. But over the long term food prices will rise. It is the natural state of affairs whenever an industry reaches monopolistic proportions

Got Gardens yet?

37 Responses leave one →
  1. 2017 June 18 4:04 pm
    [1]
    drdog09 permalink

    Lets say 5 years from now we have 4 majors — Amazon, Walmart, Costco, Aldi/Lidi. If the govt wanted control of the populace they nationalize them all and control purchases just like Venezuela has done. Sounds far fetched but the Feds have pretty much done that to healthcare and its 1/6th of the economy. It is a distinct possibility.

  2. 2017 June 18 4:39 pm
    [3]
    gnqanq permalink

    drdog – Aldi/Lidi with their small stores do a bang up job. They have a fair number of stores, well placed in urban/metro areas. I do a lot of bulk buying there, 50 cents a can for veggies is cheap, makes prepping easy. And canned goods last almost forever.

    I believe it will be hard to displace Alid/Lidi because of their low prices. I shop there for more and more vs Kroger, Giant Eagle, Walmart or Sams Club. Hard to beat Aldi’s prices.

  3. 2017 June 18 4:57 pm
    [4]
    drdog09 permalink

    GN,

    We have an Aldi just a half mile away. My wife has that store the top of her shopping list and as you say their prices are very good. We also have a Winco Foods not too far away. I like going there — bulk buys like flour (50# sacks) and bin buys by the # for things like speciality salts, spices, dried fruits.

  4. 2017 June 18 5:42 pm
    [5]
    justrand permalink

    WinCo is my favorite…all fresh produce, great prices.

    Drdog, they could control the city populace…those of us in the country areas would simply stop the food from leaving our area in the first place. 👿

  5. 2017 June 18 5:55 pm
    [6]
    JimNorCal permalink

    2
    Some anecdotal confirmation. Mid-age friends finding it hard to be accepted in newer firms with mostly young employees, older firms stagnating and being bypassed by newer fresher technology. Thus, the older firms contract and lay off.
    Also new college grads … some are in great shape but if your grades are low, or you went to a less than top school, or you don’t interview well, … there’s a set of college grads who are struggling to get to that first rung on the ladder.

  6. 2017 June 18 5:59 pm
    [7]
    JimNorCal permalink

    We have some WinCo stores in central CA. No Aldi/Lidi, had never heard the name till now.

  7. 2017 June 18 6:07 pm
    [8]
    gnqanq permalink

    Jim – here you go.

    https://www.aldi.us/

    Last week, I got eggs at 49 cents a dozen and a gallon of milk for a $1.68. Most can veggies are at 49 cents a can. Fresh vegetables are a good deal. Just not a lot of variety.

  8. 2017 June 18 6:39 pm
    [9]
    drdog09 permalink

    Jim,

    Aldi is a german outfit branching out here in the US. They started on the East coast and moved slowly West. We did not get an Aldi here in Texas till 2008 if memory serves. They operate a little different. Their typical layout is a 6 aisle operation, no more. They focus on the basics that people use everyday. Fruits are seasonal, no exotics. You bring your own bags and bag your own stuff. Its cash or debit.

    If I have anything against Aldi it is their weighing. Their house brand items, like say cheese are not 16ozs but say 14.8ozs. I assume because at heart they are a metric operated shop. Sometimes what might be a great deal, is only so-so if you put the calculator to it.

  9. 2017 June 18 7:46 pm
    [11]
    bc3b permalink

    Never heard or WinCo

    Aldi is doing well in the Detroit area. Gordon Food Service has stores if you want to buy in bulk. Aldo started accepting credit cards (Visa and MasterCard) earlier this year.

    Unless they acquire a lower class store, I don’t see Whole Foods being a challenge to Kroger or Aldi – totally different clientele.

    The biggest danger I see it to is Trader Joe’s, which has the same German parent as Aldi and upscale local chains.

  10. 2017 June 18 8:39 pm
    [12]
    JimNorCal permalink

    We have many many Trader Joe’s.
    Upscale and hip but not as costly as Whole Foods (my coworker called them Whole Paycheck).

  11. 2017 June 19 3:09 am
    [13]
    drdog09 permalink

    We have Gordon Food Service in DFW but only for commercial delivery, no store.

  12. 2017 June 19 4:14 am
    [14]
    drdog09 permalink

  13. 2017 June 19 6:50 am
    [15]
    bc3b permalink

    Gordon Food Service is headquartered in Grand Rapids, MI. It’s run by a very devout family. They give a lot to charity.

  14. 2017 June 19 6:57 am
    [16]
    justrand permalink

    Bc3b, you may not ever get WinCo in your area. They have a very specific business model which they refuse to change. It requires a LOT of floor space, since they freeze/store very little in the back. They need to be near their suppliers for fruits & vegetables as well. The employees own the company, and the food & prices are excellent.

  15. 2017 June 19 7:02 am
    [17]
    justrand permalink

    Great clip in #10, drdog. I have thought of that one quite a bit recently.

    The “storming” of the stage at the mock-assassination in New York, and the OUTRAGE by the Left that someone would DARE to interrupt THEIR incivility with incivility of their own, show that things ARE spiraling out of control.

    Good article around that topic…

    ==> “Direct action,” so-called, is the opposite of the rule of law. When members of the Obama administration engaged in unmasking of classified material following the election, as they appear to have done, that action undermines democratic process. It displays commitment to an unprecedented level of political warfare, and it reflects a disregard for the Constitution and for democratic rule itself. Its purpose is not at all different from that of James Hodgkinson, despite its different means, and it sets the tone for extremists like Hodgkinson who may not distinguish between violent rhetoric and violent acts.

    http://www.americanthinker.com/articles/2017/06/revolution_interrupted.html#ixzz4kSJoNe1U

  16. 2017 June 19 7:14 am
    [18]
    bc3b permalink

    Three shot in eight hours: Myrtle Beach or Chicago?

    http://www.myrtlebeachonline.com/news/local/crime/article156851669.html

    Myrtle Beach is running ads, designed to appeal to blacks, on Cable TV.

  17. 2017 June 19 8:35 am
    [19]
    bc3b permalink

    CBS’s Scott Pelley: http://www.newsbusters.org/blogs/nb/tom-blumer/2017/06/18/scott-pelley-dc-attack-congressmen-was-some-degree-self-inflicted

    I could make the same case if people started shooting members of the Main Stream Media.

  18. 2017 June 19 8:49 am
    [20]
    bc3b permalink

    Slovakia passes ban on Islam as a religion:

    http://www.express.co.uk/news/world/738462/Slovakia-law-Islam-ban-registered-religion-Eu-migrant-quota-Muslim-sentiment

    Let’s hear it for Eastern Europe!!!

  19. 2017 June 19 9:29 am
    [21]
    MI Conservative permalink

    Interesting thoughts about stores above. I’m an Aldi’s shopper too. When your feeding five 18-21 yr old hockey players lunch everyday for 9 months I gotta save. I starting shopping there when it opened and I wondered if it would catch on. It is packed now!! Huge lines. You wine and beer drinkers –they have great stuff at greater prices.

  20. 2017 June 19 9:46 am
    [22]

    If ALDI can do it, why not the others??? Money grubbers.

  21. 2017 June 19 9:51 am
    [23]

    Muslims have gone on the rampage in Manchester, killing anyone who’s English. Police fear the death toll could be as high as 8 or 9.

    Years ago it was suggested that, “An apple a day keeps the doctor away.” But, since all the doctors are now Muslim, I’ve found that a bacon sandwich works great!

  22. 2017 June 19 9:59 am
    [24]

    Hell is now starting to freeze over as the oligarchs finally get one right.

  23. 2017 June 19 10:29 am
    [25]
    drdog09 permalink

    24,

    Gotta watch those Asians. Next thing you know they will come up with a way to invalidate business patents. (Please!!)

  24. 2017 June 19 10:39 am
    [26]
    bc3b permalink

    ip727 #22 –

    Why can’t they all do it? Aldi offers far less selection than Kroger or Publix – no drugs, toiletries, name brands. Limited meat, fish, vegetable and fruit selection. I shop at Aldi for some basics, but still end up going to Kroger and Meijer. Many store brands are the same as Aldi (e.g. Kroger or Meijer brand Raisin Bran). If you want Post or Kellogg, which Aldi doesn’t offer, you pay more.

  25. 2017 June 19 10:57 am
    [27]

    Ah so kemosabi. I shop at army surplus for expired MRE. Yum yum

  26. 2017 June 19 12:03 pm
    [28]
    bc3b permalink

  27. 2017 June 19 12:39 pm
    [29]
    drdog09 permalink

  28. 2017 June 19 2:31 pm
    [31]
    gnqanq permalink

    In honor of the Supreme Court (they did get 1 right).

    https://www.youtube.com/watch?v=_1zJeGf-gpc

  29. 2017 June 19 3:08 pm
    [32]
    Eph permalink

    29 Dr

    NM is the asshole of the SW. They deserve this

  30. 2017 June 19 4:00 pm
    [33]
    drdog09 permalink

    bc,30,

    So Amazon is going to destroy the toney holier-than-thou Liberal image of the store. Next thing you know rednecks will be shopping there. (Which sounds like a good idea just to tick the Libs off…)

  31. 2017 June 19 4:23 pm
    [34]
    drdog09 permalink

  32. 2017 June 19 5:05 pm
    [35]
    bc3b permalink

    Illegal alien arrested for killing Muslim teen in Virginia:

    http://nypost.com/2017/06/19/killing-of-muslim-teen-being-probed-as-road-rage-incident/

    Clash of protected classes.

  33. 2017 June 19 10:31 pm
    [36]
    JimNorCal permalink

    It’s not just the state of IL that’s running low on money 🙂

    https://mishtalk.com/2017/06/19/ges-pension-time-bomb-shortfall-31-billion-and-rising/#more-46406
    At $31 billion, GE’s pension shortfall is the biggest among S&P 500 companies and 50 percent greater than any other corporation in the U.S. … In the last two years, GE spent little more than $2 billion on total pension contributions, which hasn’t been nearly enough to keep the overall shortfall from widening. (The company also curtailed capital investments.) At the end of last year, its pension had $94 billion in obligations but only $63 billion in assets — a funding ratio of 67 percent.

  34. 2017 June 20 6:18 am
    [37]
    justrand permalink

    bc3b, in re. the “Illegal alien arrested for killing Muslim teen in Virginia”, that explains why the OUTRAGE POLICE!!! haven’t been out in full force.

    your note: “Clash of protected classes” is exactly it!

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