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The grocery business has brutally low margins (~1%). Bezos famously said "your margin is my opportunity", but there's no margin == no opportunity... at least as
by Domenic_S 9y ago
The grocery business has brutally low margins (~1%). Bezos famously said "your margin is my opportunity", but there's no margin == no opportunity... at least as far as the traditional grocery business goes.
There's some far deeper strategy going on here, lots of possibilities.
- inthewoods 9y agoAgreed - definitely something bigger going on - although Whole Foods has net margins in the 3% range.
- jaggederest 9y agoI think they're going for grocery logistics, not groceries themselves. There's still plenty of margin for guaranteeing timely, correct delivery of perishable goods. Think distributors, not retail stores. At least that's what I got from the article
- deleted 9y ago[deleted]