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<Quote> "While we do not oppose the merger at this time, we are concerned what this merger could mean for African American communities across the country alread

<Quote> "While we do not oppose the merger at this time, we are concerned what this merger could mean for African American communities across the country already suffering from a lack of affordable healthy food options from grocers," </Quote> Did the Democratic representative forgot the grocery in question is Whole Foods? Affordability is not the strong suite of Whole Foods, and the representative from Ohio should know that! This merger means nothing to people looking for affordable grocery. NOTHING.

IB885588 9y ago
It's a near certainty that Amazon will lower prices at Whole Foods (by accepting lower margins and targeting faster growth and expansion), so if anything, it'll improve affordability.
- eplanit 9y ago
  This is correct; and, it helps eliminate the issue of so-called "food deserts"[1], because geography/neighborhood will no longer be a barrier to higher-quality foods. [1] https://en.wikipedia.org/wiki/Food_desert https://en.wikipedia.org/wiki/Food_desert
  - bdamm 9y ago
    You need to afford a computer of some kind, afford the premium for food delivery, and have a debit card in order to have fresh food show up in your food desert. Most people for whom living in a food desert is a problem are impoverished, and therefore don't have a car, don't have a phone/tablet/computer, and often don't have a debit card, and certainly won't pay the delivery premium. So this is not in any way going to help those living in fresh food deserts.
    - Eridrus 9y ago
      Poor people have smartphones at a rate far higher than you would expect, partly because it's practically necessary these days, but also because you can get one on a plan from your carrier. Delivery costs are a real issue, but I have a hope that we will get self-driving trucks in the near future and delivery prices will fall.
    - intopieces 9y ago
      Amazon has a gift card system (Amazon Cash I think?) and as a full blown grocery store could accept EBT.
  - bsder 9y ago
    Doubtful. The kinds of foods needed in those areas are fresh, cheap, high spoliage items aka unprofitable to touch unless in bulk.
- kafkaesq 9y ago
  by accepting lower margins That is, by lower quality standards and working conditions. If its own internal (non technical) sectors are to be taken as any indication.
  - IB885588 9y ago
    That's not how it works. If Whole Foods is currently getting a 10% margin on a product and Amazon says we'll sell it for a 5% margin, nothing else has changed in the store or the product, but the price and margin are lower.
skinnymuch 9y ago
Haha yeah I was thinking the same thing. What does any of this have to do with your average consumer. Whole Foods was never about that. Regardless, Amazon might cut Whole Food prices if they do anything with prices. There's no way they'll ever raise them. Even though Trader Joe's* has so far catered to certain people, if that was the company in question of merging, there would be a case. *I know Trader Joe's is a subsidiary of one of the Aldi companies.
AndrewKemendo 9y ago
That statement had nothing to do with the investigation, it was a chance to play up her constituency - this is what politicians do. Here, let me translate for you: "I, as a representative of a majority African American district, am making the public and my voters aware that I am involved in a popular issue that they will remember. I can also tie this to the real concern of food deserts because Whole Foods is a grocery store, and it allows me to find relevancy even if only marginally."
spraak 9y ago
I'm not African American/Black, but Amazon already partners with a similar grocery store in my area called Sprouts. I.e. I can order through Amazon Prime Now my groceries from Sprouts. I don't have a car and the nearest store to me would be a long bus/Uber ride, so having Amazon's help to deliver my groceries saves me not only a lot of time, but money, too. I am very grateful for it
ForrestN 9y ago
I would imagine the argument for concern (not saying I agree with it) goes like this: If Amazon Whole Foods is freed from the need to be profitable (like the rest of Amazon), and has the access to all of Amazon's other infrastructure, it will have a powerful competitive advantage against all other major grocery chains. Even if Amazon Whole Foods continues to focus on the upper end of the grocery market (which they may not), that will still make it even harder for other chains to compete in those markets, which I assume are more profitable than markets full of poor people. If a given chain is only able to compete in the markets with the least purchasing power, that could have the effect of causing those chains to go out of business, which would in turn mean store closures in the poorest places. If I'm in charge of Ralph's as they're getting outcompeted in wealthier urban areas with high rents, I have to make up that profit by closing the least profitable stores, right? Also, why assume that Amazon will keep Whole Foods' pricing or even brand alignment? Maybe they are simply buying a massive infrastructure for Amazon Fresh or whatever, and they intend to compete further down the line? I don't think there is any reason to assume that Amazon Whole Foods will have the same price range as Whole Foods. By definition, there is no great business to be had selling groceries in poor areas. That's why there are food deserts now. If Amazon drives down margins and helps consolidate the grocery market, there may be even less likelihood that stores in poor areas will open or stay open. Edit: read the actual letter, which makes very direct points about the potential pitfalls and merely asks for them to be studied (not for the merger to necessarily be blocked): http://www.ufcw.org/wp-content/blogs.dir/61/files/2017/07/Lttr-to-DOJ-FTC-Re-Amazon-Whole-Foods-072017.pdf http://www.ufcw.org/wp-content/blogs.dir/61/files/2017/07/Lt...
- stale2002 9y ago
  Driving down costs isn't an argument against a merger. It is the opposite. It is the argument that Amazon would make IN FAVOR of the merger.
  - ForrestN 9y ago
    I'm not talking about driving down consumer costs, I'm talking about driving down profit. In addition to the usual benefits of any consolidation, Amazon is generally not expected to be profitable in the way that grocers are. How can a company trying to maintain profitability compete with a giant who doesn't have to?
j10t 9y ago
Reminds me of how the Congressional Black Caucus pushes for billionaires' repeal of the estate tax under the guise of racial equity. I think they try to make it into social issues, racial justice, just to divert the conversation from the indefensible root of their positions. > “Full repeal of the estate tax would allow African Americans to pass the full fruits of their business success to the next generation and thereby laying the foundation for a permanent minority ownership class that can contribute to the economic growth and development of the United States economy,” Robert Johnson, whose worth has been estimated at more than half a billion dollars, wrote to the House Ways and Means Committee last week.
- _delirium 9y ago
  While I agree that happens, in your quote just to be clear, Robert Johnson isn't a member of the Congressional Black Caucus (or of Congress), he's just a very wealthy black businessman (founder of BET) who wrote his opinion opposing the estate tax in a letter to the House Ways and Means Committee. I haven't been able to find whether any members of the CBC actually agree with it. Most of the Caucus's members tend to vote fairly "left" on taxation-related issues.
- bdamm 9y ago
  I'd like to see a 50-year hiatus on inheritance taxes for black people.
strict9 9y ago
In limited, specific markets, Whole Foods is definitely entering markets with a lack of affordable, healthy options: >Since it was announced in 2013, Whole Foods' plan to open a store in one of Chicago's most economically depressed South Side neighborhoods has drawn praise, excitement, scrutiny and some doubt. The big questions — Will the community support it? Will the store be affordable to residents but still turn a profit? Will it work? — won't be answerable for months or even years. >But Wednesday was reserved for exuberance and unchecked optimism. Many shoppers applauded the store's presence in a community with few options for fresh, healthy food. And more than 35 South Side vendors sampled their wares that will be sold in the store. Whole Foods is hoping that local connection, plus significantly lower prices on select items, keeps shoppers coming back after the hoopla has died down. http://www.chicagotribune.com/business/ct-whole-foods-englewood-opening-0929-biz-20160928-story.html http://www.chicagotribune.com/business/ct-whole-foods-englew... (edit quote marks)
BlackjackCF 9y ago
Yeah... I don't get it. Maybe I'm not seeing it from disadvantaged/poor communities, but I don't actually see how this would impact them. The Whole Foods-Amazon merger will do either one of the following: 1) Whole Foods will continue to keep its prices as high as it does. Poorer/disadvantaged communities will continue to not shop at Whole Foods as it is out of their price range. 2) Amazon lowers Whole Foods prices. Whole Foods becomes affordable for more communities. If Whole Foods expands into poorer communities with these lowered prices, it will give poorer communities more access to groceries. If Whole Foods does not expand into these poor communities, storefronts like Smart & Final, Walmarts, Big Lots!, Ralphs, VONS, etc will continue to exist. I really fail to see the problem here.
mathattack 9y ago
And wouldn't the merger increase delivery options?

IB885588 9y ago

It's a near certainty that Amazon will lower prices at Whole Foods (by accepting lower margins and targeting faster growth and expansion), so if anything, it'll improve affordability.

eplanit 9y ago
This is correct; and, it helps eliminate the issue of so-called "food deserts"[1], because geography/neighborhood will no longer be a barrier to higher-quality foods. [1] https://en.wikipedia.org/wiki/Food_desert https://en.wikipedia.org/wiki/Food_desert
- bdamm 9y ago
  You need to afford a computer of some kind, afford the premium for food delivery, and have a debit card in order to have fresh food show up in your food desert. Most people for whom living in a food desert is a problem are impoverished, and therefore don't have a car, don't have a phone/tablet/computer, and often don't have a debit card, and certainly won't pay the delivery premium. So this is not in any way going to help those living in fresh food deserts.
  - Eridrus 9y ago
    Poor people have smartphones at a rate far higher than you would expect, partly because it's practically necessary these days, but also because you can get one on a plan from your carrier. Delivery costs are a real issue, but I have a hope that we will get self-driving trucks in the near future and delivery prices will fall.
  - intopieces 9y ago
    Amazon has a gift card system (Amazon Cash I think?) and as a full blown grocery store could accept EBT.
- bsder 9y ago
  Doubtful. The kinds of foods needed in those areas are fresh, cheap, high spoliage items aka unprofitable to touch unless in bulk.
kafkaesq 9y ago
by accepting lower margins That is, by lower quality standards and working conditions. If its own internal (non technical) sectors are to be taken as any indication.
- IB885588 9y ago
  That's not how it works. If Whole Foods is currently getting a 10% margin on a product and Amazon says we'll sell it for a 5% margin, nothing else has changed in the store or the product, but the price and margin are lower.

skinnymuch 9y ago

Haha yeah I was thinking the same thing. What does any of this have to do with your average consumer. Whole Foods was never about that. Regardless, Amazon might cut Whole Food prices if they do anything with prices. There's no way they'll ever raise them. Even though Trader Joe's* has so far catered to certain people, if that was the company in question of merging, there would be a case. *I know Trader Joe's is a subsidiary of one of the Aldi companies.

AndrewKemendo 9y ago

That statement had nothing to do with the investigation, it was a chance to play up her constituency - this is what politicians do. Here, let me translate for you: "I, as a representative of a majority African American district, am making the public and my voters aware that I am involved in a popular issue that they will remember. I can also tie this to the real concern of food deserts because Whole Foods is a grocery store, and it allows me to find relevancy even if only marginally."

spraak 9y ago

I'm not African American/Black, but Amazon already partners with a similar grocery store in my area called Sprouts. I.e. I can order through Amazon Prime Now my groceries from Sprouts. I don't have a car and the nearest store to me would be a long bus/Uber ride, so having Amazon's help to deliver my groceries saves me not only a lot of time, but money, too. I am very grateful for it

ForrestN 9y ago

I would imagine the argument for concern (not saying I agree with it) goes like this: If Amazon Whole Foods is freed from the need to be profitable (like the rest of Amazon), and has the access to all of Amazon's other infrastructure, it will have a powerful competitive advantage against all other major grocery chains. Even if Amazon Whole Foods continues to focus on the upper end of the grocery market (which they may not), that will still make it even harder for other chains to compete in those markets, which I assume are more profitable than markets full of poor people. If a given chain is only able to compete in the markets with the least purchasing power, that could have the effect of causing those chains to go out of business, which would in turn mean store closures in the poorest places. If I'm in charge of Ralph's as they're getting outcompeted in wealthier urban areas with high rents, I have to make up that profit by closing the least profitable stores, right? Also, why assume that Amazon will keep Whole Foods' pricing or even brand alignment? Maybe they are simply buying a massive infrastructure for Amazon Fresh or whatever, and they intend to compete further down the line? I don't think there is any reason to assume that Amazon Whole Foods will have the same price range as Whole Foods. By definition, there is no great business to be had selling groceries in poor areas. That's why there are food deserts now. If Amazon drives down margins and helps consolidate the grocery market, there may be even less likelihood that stores in poor areas will open or stay open. Edit: read the actual letter, which makes very direct points about the potential pitfalls and merely asks for them to be studied (not for the merger to necessarily be blocked): http://www.ufcw.org/wp-content/blogs.dir/61/files/2017/07/Lttr-to-DOJ-FTC-Re-Amazon-Whole-Foods-072017.pdf http://www.ufcw.org/wp-content/blogs.dir/61/files/2017/07/Lt...

stale2002 9y ago
Driving down costs isn't an argument against a merger. It is the opposite. It is the argument that Amazon would make IN FAVOR of the merger.
- ForrestN 9y ago
  I'm not talking about driving down consumer costs, I'm talking about driving down profit. In addition to the usual benefits of any consolidation, Amazon is generally not expected to be profitable in the way that grocers are. How can a company trying to maintain profitability compete with a giant who doesn't have to?

j10t 9y ago

Reminds me of how the Congressional Black Caucus pushes for billionaires' repeal of the estate tax under the guise of racial equity. I think they try to make it into social issues, racial justice, just to divert the conversation from the indefensible root of their positions. > “Full repeal of the estate tax would allow African Americans to pass the full fruits of their business success to the next generation and thereby laying the foundation for a permanent minority ownership class that can contribute to the economic growth and development of the United States economy,” Robert Johnson, whose worth has been estimated at more than half a billion dollars, wrote to the House Ways and Means Committee last week.

_delirium 9y ago
While I agree that happens, in your quote just to be clear, Robert Johnson isn't a member of the Congressional Black Caucus (or of Congress), he's just a very wealthy black businessman (founder of BET) who wrote his opinion opposing the estate tax in a letter to the House Ways and Means Committee. I haven't been able to find whether any members of the CBC actually agree with it. Most of the Caucus's members tend to vote fairly "left" on taxation-related issues.
bdamm 9y ago
I'd like to see a 50-year hiatus on inheritance taxes for black people.

strict9 9y ago

In limited, specific markets, Whole Foods is definitely entering markets with a lack of affordable, healthy options: >Since it was announced in 2013, Whole Foods' plan to open a store in one of Chicago's most economically depressed South Side neighborhoods has drawn praise, excitement, scrutiny and some doubt. The big questions — Will the community support it? Will the store be affordable to residents but still turn a profit? Will it work? — won't be answerable for months or even years. >But Wednesday was reserved for exuberance and unchecked optimism. Many shoppers applauded the store's presence in a community with few options for fresh, healthy food. And more than 35 South Side vendors sampled their wares that will be sold in the store. Whole Foods is hoping that local connection, plus significantly lower prices on select items, keeps shoppers coming back after the hoopla has died down. http://www.chicagotribune.com/business/ct-whole-foods-englewood-opening-0929-biz-20160928-story.html http://www.chicagotribune.com/business/ct-whole-foods-englew... (edit quote marks)

BlackjackCF 9y ago

Yeah... I don't get it. Maybe I'm not seeing it from disadvantaged/poor communities, but I don't actually see how this would impact them. The Whole Foods-Amazon merger will do either one of the following: 1) Whole Foods will continue to keep its prices as high as it does. Poorer/disadvantaged communities will continue to not shop at Whole Foods as it is out of their price range. 2) Amazon lowers Whole Foods prices. Whole Foods becomes affordable for more communities. If Whole Foods expands into poorer communities with these lowered prices, it will give poorer communities more access to groceries. If Whole Foods does not expand into these poor communities, storefronts like Smart & Final, Walmarts, Big Lots!, Ralphs, VONS, etc will continue to exist. I really fail to see the problem here.

mathattack 9y ago

And wouldn't the merger increase delivery options?