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https://twitter.com/dkberman/status/875701677504024576 "Amazon did not just buy Whole Foods grocery stores. It bought 431 upper-income, prime-location distribution nodes for everything it does."
$13.7B / 431 = $31.79m per store. I have zero experience with real estate prices for retail outlets, but it feels as if that's a bit on the high end?
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Maybe, but the fact that they were just acquired by a company notorious for abusing its low-level employees shows the limitations of this model (as did the pressure they began to face from investors to tighten up on that front when they started to become less profitable).
Treating them above market or not, Amazon acquired the company for billions and not because Whole Foods was doing badly.
Checkmate, brick and mortar!! Amazon is eating the world.
Looks to me like the ultimate war between grocery stores in the US will be fought out between Amazon/WFM (premium, delivery) and ALDI/Lidl (discount, no-frills). As a German I'm amazed by the "food haul" videos on YouTube and the positive feedback for ALDI US (belongs to ALDI Süd), Trader Joe's (ALDI Nord) and Lidl (part of Schwarz Gruppe, they just started in the US yesterday).
Aldi/Lidl have really taken over in the UK in the last 10 years. I'm not really sure how they manage it - more, smaller stores?
In the UK they also profit from their European footprint. If you go somewhere else in Europe, you'll find that most products (nearly everything except for some food items) are the same as in the UK. They can buy in much bigger amounts than even Sainsbury's or Tesco as they operate in most European countries.
Better buy than Slack for $9B.
https://twitter.com/dkberman/status/875701677504024576 "Amazon did not just buy Whole Foods grocery stores. It bought 431 upper-income, prime-location distribution nodes for everything it does."
I don't think that is right, Whole Foods stores are already full of...food. They don't have room for hundreds of additional products, never mind tens of thousands.
You get free same day delivery. Amazon just greatly saved on last mile delivery costs.
That's the value of those nodes without having to store all the inventory.
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I mean to be fair, most of the jobs at WF stores ARE unskilled labor though.
Not true. I know several people that have good careers at WF and would be offended by the fact that you think they are unskilled. Seasonal workers in the FCs literally get only 4 hours of training and are then filling orders. That's the pure definition of unskilled, and a far cry from a pastry chef at WF.
Oof. I wonder what this means for Whole Foods culture and employees. If you don't know, John Mackey, the CEO / founder, is a major believer in conscious capitalism and of empowering his employees. Whole Food employees get paid pretty darn well with some crazy good benefits for their industry and line-of-work (UNION FREE most of the time too!). WF banks on them being true believers and motivators of the cause - includ…
Disclaimer: I work for AWS, but my opinions are my own. I don't think you have much to worry about if you're a WF employee. Amazon actually treats their employees very well. In my experience here, I've never seen any of the things the NY times article talked about, either on my team or any other team I've interacted with. People have a healthy work/life balance (40-50 hours a week), get paid very well (definitely abo…
Gotcha.
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> disrupt the wine and liquor sector Explain?
Maybe they mean the inefficiency in the producer -> distributor-> retailer chain? What value does the middle guy add?
From experience Aldi is quite good when it comes to wine in the middle price segment. Often 20-30% cheaper than comparable wines in other stores.
Looks to me like the ultimate war between grocery stores in the US will be fought out between Amazon/WFM (premium, delivery) and ALDI/Lidl (discount, no-frills). As a German I'm amazed by the "food haul" videos on YouTube and the positive feedback for ALDI US (belongs to ALDI Süd), Trader Joe's (ALDI Nord) and Lidl (part of Schwarz Gruppe, they just started in the US yesterday).
Don't count out Kroger, the largest supermarket chain in the US. According to Wikipedia in 2015 it trailed only Walmart and Costo in worldwide revenue, and had 20% more revenue than Amazon. https://en.wikipedia.org/wiki/Retail#Global_top_ten_retailer...