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Has Amazon really shaken other grocer's to their cores though? Whole Foods served a completely different market than Kroger and the like. Unless Amazon plans to
by hueving 9y ago
Has Amazon really shaken other grocer's to their cores though? Whole Foods served a completely different market than Kroger and the like. Unless Amazon plans to alter WF to sell affordable groceries as well, I'm failing to see why this move is so threatening to these other grocers. What am I missing?
- prklmn 9y agoYou're not missing anything except the the value of the hype that goes with the deal. The analysts, the fund managers making buy decisions and so on are all in the Whole Foods demographic, so they love the deal and feel the same way as the author - it's all about the optics. I couldn't agree more with you about Kroger. Whole foods did $15b last year in sales, Kroger did $115b. If they managed to triple the volume of Whole Foods, they would still be a small competitor relative to Kroger.
- blazespin 9y agoYeah, groceries are low margin long term business. It will take a decade or more, but the doom train is coming. I think the weird thing though is that should have been obvious already. Not sure why it took the acquisition to wake folks up.
- tyingq 9y ago>Unless Amazon plans to alter WF to sell affordable groceries as well... Not just affordable, but brands that customers in the larger segment would recognize. The high end products at Kroger, Safeway, etc, are often things not sold at WF.