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You might have missed the point I was making. If the 4 star locations were worth keeping open Amazon likely would have. My suggestion is to mingle a logistica
by mjevans 5y ago
You might have missed the point I was making. If the 4 star locations were worth keeping open Amazon likely would have. My suggestion is to mingle a logistical operations nexus they already have and an extremely small cache of things they might be moving through it anyway. Adding anything extra revisits dis-economies of scale, just like the old B&M chains might not even have locations in smaller suburb cities. Plus there's already lean-end competition from highly experienced cost cutters that I'm sure come to mind as the places you'd already go to buy an item you need an hour ago.
- mumblemumble 5y agoWhole Foods locations are not a general purpose logistical operations nexus, though. They're already jammed full of food and bougie household goods, and highly optimized as a retail outlet for food and bougie household goods. Even moving cheap Amazon consumer products into that space might risk destabilizing a very well-tuned cash cow that already enjoys the some of the highest profit per square foot that can be seen outside of a Trader Joe's. I doubt that nobody thought of this when Amazon first acquired Whole Foods. That they haven't done it so far implies that someone with much better access than we have to real information on the subject has already done the math, and decided not to.