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Amazon Buys Whole Foods
Posted: 16 June 2017 05:37 PM   [ Ignore ]
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http://www.cnbc.com/2017/06/16/amazon-is-buying-whole-foods-in-a-deal-valued-at-13-point-7-billion.html

This will be interesting to see.  Whole Foods IMO is full of over-priced items that is a playground for the well-to-do….Amazon is pretty much taking over retail and they want to be a major player in the grocery business.

It will be interesting to see how this plays out.  The retail grocery stocks took a big hit today over the announcement.

I shop quite bit with Amazon because I hate shopping in brick and mortar places and there are very few things I need immediately that a few days shipping will suffice.

I don’t shop at Whole Foods out of principle. As I said, I think they are way overpriced for the items.

I don’t have much of an opinion either way, but it seems to be a pretty big story and wanted to put it out there to show my good friend Pines that everything doesn’t send my off in rage…I would like to hear from folks on this one to get your take.

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Posted: 16 June 2017 06:10 PM   [ Ignore ]   [ # 1 ]
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I agree with what you said.  Love Amazon myself, I’m a stockholder.  I think they want to revolutionize retail shopping, especially in the food market.  Whole foods allows them to have pre-existing infrastructure in place to install their smart stores.  Where you can walk in fill the cart and walk right out without stopping at a cashier because the scanners at the door have scanned your cart and you have paid via card online after the scan.  This also gives them a greater supply base to sell groceries online.  Distribution hubs and pickup locations for online shopping orders.

I don’t think this is as much a brick and motor play as a lot are making it out the be.  It’s a tech play or at the very least a retail hybrid.  I mean we are literally talking about 431 pre-existing locations for them to do what the need to do.  That’s a large network already in place.  Soon they will have their own distribution services, sucks to be UPS/Fedex/USPS.

This might be your chance to give Whole Foods another shot after Amazon takes over.  They are known for cutting costs and undercutting retail.

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Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

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Posted: 16 June 2017 06:32 PM   [ Ignore ]   [ # 2 ]
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I am not against designer foods.  I just don’t want to over-pay for the privilege.  Places like Kroger, Sam’s Club, Wal-Mart, Publix are all getting into that type of specialty Food more and at better prices.

I am never against new Ideas.  I hope it works well. As someone who likes to cook for relaxation when I get a little time off, I am all for more places to shop.

I like your thoughts about the technology aspect of it.  You “Youngsters” as Danny Ford was fond of saying are really dialed into the tech side of this..

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Posted: 16 June 2017 08:41 PM   [ Ignore ]   [ # 3 ]
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I’m guessing this was more to save some time and advance their war with Walmart.  They must be making a ton of money to shell this out for they type of establishment (brick and mortar) they’ve usually killed. 

As others said I think half the reason they are doing this is infrastructure for an online order and store hybrid.  Amazon seem pretty savvy and I’ll be they will be successful.  They will definitely bring prices down.  Same day delivery could give them the ability to liquidate expiring stock easily which will save them a ton on waste.  I used to work at PigglyWiggly and would throw out about a cart of dairy only each day.  Imagine being able to see their quick deal for expiring product and just picking it in the parking lot on the way home.

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Posted: 17 June 2017 01:32 PM   [ Ignore ]   [ # 4 ]
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It appears workers at Whole Foods are worried about their jobs:


http://www.reuters.com/article/us-whole-foods-m-a-workers-idUSKBN1972VI

 

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Posted: 17 June 2017 02:03 PM   [ Ignore ]   [ # 5 ]
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As they should be.  Their little friendly specialty grocery store is going to change, like many mom and pop shops.  They better retrain in the logistics field…..or go back to the yoga studio.  This should also send shivers down the spines of the other big groceries.  2 years ago Whole Foods CEO slammed Amazon calling it’s grocery delivery service it’s Waterloo, now Amazon buys Whole Foods.  Kind of funny.  I guess the meer 8 million dollars Whole Foods CEO got out of the deal was worth it.

Amazon is actually not a profit driven company.  They put so much money back into the company, hence why it’s grown so fast.  Bezos is a beast and Amazon is the king of purposeful reinvestment.

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If you’re happy with good enough, then good enough is what you’ll be. Greatness requires the expectation of excellence.

Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

Nah, 5-0 sounds better.

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Posted: 17 June 2017 05:44 PM   [ Ignore ]   [ # 6 ]
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CNN just posted a rather scathing attack on Amazon’s move:

http://money.cnn.com/2017/06/17/news/companies/amazon-whole-foods-reshapes-grocery/index.html


I am oddly attracted to this story.  I guess because we all need food and this will definitely impact everyone.

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Posted: 17 June 2017 06:56 PM   [ Ignore ]   [ # 7 ]
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I didn’t really find the article scathing….  Amazon is efficient.  They are an innovator and are winning the capitalism race right now.  Every business should be scared of somebody doing a better job of doing their business.  In this case it’s Amazon vs another type of retail. 

I hope they move into the car business soon because those crooks need to be cut.  Maybe they can work something out with Tesla to help the legislative/lobbyist roadblocks.

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Posted: 17 June 2017 07:48 PM   [ Ignore ]   [ # 8 ]
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Normal retail has sat back on it’s heels for years.  They should of seen this coming and evolved.  Amazon happened fast, but not overnight.  It’s on them, not Amazon.  I mean seriously how many of you REALLY enjoy going out to buy groceries or other general items for that matter.  I don’t.  Brick and motor is almost dead to me.  Even if I were to walk into one, I’ve probably already ordered the item online and am just picking it up.

I’m bullish on Tesla all around but interested in it for car business while this Model 3 rolls out.  I think everyone likes to hate on it but I don’t think they realize how revolutionary that company is and how much Musk is personally invested into it.  I mean they just put out two of the best safety ratings EVER for two of their models.  Two perfect 5 stars across the board, one actually ended up being 5.4 rating which is a new record and even as a car scores better than every other SUV and minivan out there.  No one had ever done it before.  So they have the safest SUV EVER, as well as the safest car EVER in their current line up with another model about to roll out.  The Model 3 is about to come out at $35k base before any incentives it really could put it on the mainstream map and actually start turning profit.  It’s an economical car to drive for lower budget folks that could not afford Teslas before.  Not sure Amazon will have a hand in the car business, but they will provide the tech for the car business.  Alexa type expanded AI service for the cars.

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If you’re happy with good enough, then good enough is what you’ll be. Greatness requires the expectation of excellence.

Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

Nah, 5-0 sounds better.

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Posted: 19 June 2017 03:09 PM   [ Ignore ]   [ # 9 ]
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Ancient Orange - 17 June 2017 06:56 PM

I didn’t really find the article scathing….  Amazon is efficient.  They are an innovator and are winning the capitalism race right now.  Every business should be scared of somebody doing a better job of doing their business.  In this case it’s Amazon vs another type of retail. 

I hope they move into the car business soon because those crooks need to be cut.  Maybe they can work something out with Tesla to help the legislative/lobbyist roadblocks.

If you can’t get a good deal on a car then shame on you.  There is too much free information on the internet to be able to know what a fair deal is on a car.  Places like Kelly Blue Book and Edmund’s can tell you what a dealer’s cost is on a new car and also what to expect for a trade value or fair price on a used car.

The people that are getting their clocks clean are people that do business as places like CarMax where they don’t discount cars (About a 4 grand average markup) and bust your ass on finance charges.  The margins on new cars are relatively low (2-3 percent) because people now can shotgun bid all over the place on the internet to find the biggest whore that will give a car a way.  Manufactures now do a lot more volume bonuses to dealer to blow cars out.

It will be funny to see people try to negotiate on Tesela 3’s. What I expect to happen is for those people that are able to get them, many will turn around just like a ticket scalper and sell them to the highest bidder.

The younger each generation gets, the less their negotiating skills have become.  They like the “No-haggle” style…well so do dealers…Duh.  No Haggle usually means more profit to the dealer….

 

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Posted: 19 June 2017 05:59 PM   [ Ignore ]   [ # 10 ]
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Agreed with that.  I’m 31, when I went to Morocco with the military it’s all bartering over there and I had never experienced it before.  Was a shock really but I enjoyed getting a better price.  Was one of the first times I actually had to barter to buy goods.  When I went in to buy my current car I went in knowing all the costs, information, etc and walked out with what I felt was a great deal.  Only went in for a day because I found the exact car online, emailed and told them to get me this car, negotiated price very quickly and then went in to finish paperwork.  Really was quite simple and again I was a bit surprised it was so easy.  I think Carmax, at least a few years ago, was pretty fair on selling your old vehicle to them.  They were going to give me what the dealership would in trade.

If the early Tesla 3’s sell well I can see them ramping up production where they won’t be so limited or exclusive.  Their car business is really hinging on this model release.  They won’t collapse because Musk will always prop it up, but the middle class car market is where they need to steal the show with the model 3.

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2()17 CHAMPS

If you’re happy with good enough, then good enough is what you’ll be. Greatness requires the expectation of excellence.

Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

Nah, 5-0 sounds better.

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Posted: 19 June 2017 11:19 PM   [ Ignore ]   [ # 11 ]
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Oh and Musk just either closed a deal or is close to a deal to build in China for China opening up his market.

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2()17 CHAMPS

If you’re happy with good enough, then good enough is what you’ll be. Greatness requires the expectation of excellence.

Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

Nah, 5-0 sounds better.

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Posted: 20 June 2017 09:08 AM   [ Ignore ]   [ # 12 ]
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I think the Tesela concept is catching fire, I still wonder how far out we will be for 100% battery cars to be common place.

First here’s a pretty recent article talking about the first Tesela 3’s not shipping until the end of 2018:

http://money.cnn.com/2017/06/06/technology/business/tesla-model-3-backlog/index.html?iid=EL

The starting price of the T3’s is around 35K, but those will end up in the 40’s if you accessorize them and of course the pesky tax and fees.

I am more thinking about the infrastructural to support these cars.  How many selling points will there be and service? As neat of a concept as it it, they are still machines that will break and need repairs and service. 

Then there is the “refueling” or recharging.  granted, these cars are supposed to be able to go about 250-300 miles now on a charge which is damn impressive.  But if you want to go on a long trip, you need an infrastructure of recharging places….and with recharging, how fast can it be done? If they can get that process down to say less than 30 minutes or some other method to fast charge it will really take off.  Nothing that innovation and interest in the product won’t be able to handle.

Eventually, the other manufacturer’s will have no choice but to move in this direction.  They already are somewhat.

I still think we are a good 10-15 years out from this technology really catching on in a way that is affordable to the middle-class and a solid network of service centers and charging stations…

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Posted: 20 June 2017 09:54 AM   [ Ignore ]   [ # 13 ]
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Maybe, but for those people who don’t travel frequently 250-300 miles is a ton for general get to work, home, and errands around town.  Especially if they have the super charger at their house.  If they can’t afford a 35-40k Tesla then I’d be willing to bet they aren’t constantly worried about long trips.  Maybe the beach or something now and then.  As more states accept the whole global warming thing you should see better incentives and breaks given for owners of these cars which makes them more attractive to buy and drive.  I guess it comes down to the fuel costs and what you will save over the lifetime of the car to make it worth it.  A 2017 Prius starts at 23k, will you save more than 10k over the life of the car to make the Tesla worth it?  Not sure.  For a straight gas car I’d say it’s pretty darn close.  By very rough calculations I will be spending over 10k in fuel alone for my car over the course of 6 years if prices stay about the same.  And that’s not even factoring in things like spark plugs and general gas engine maintenance like oil changes which is still a factor for hybrids where you can get hit double hard if you have repairs to the gas engine and electric engine/batteries.  Tesla is trying to become a package.  With the solar panel roof shingles it will charge their Tesla home battery which will store energy for items such as your home Tesla super charger to fuel your Tesla car.  I don’t argue it’s multiple years out but I personally think it’s outstanding and could see it all as a great investment.

For the record Tesla states the super chargers should charge about 170 miles range in about 30 minutes.  Sounds low when you think about it, but then compare it to what you get on a normal gas engine and it’s great, even if you don’t sit there for 30mins.  Being able to plug it up at home is a big selling point, you’ll never run out if it’s plugged up each night.  The only way you would have to worry is if you are going on a very long trip spanning multiple states and now hotels are even offering superchargers as a selling point to stay there.  This will come down for sure as time goes by.

Right now I see this as an every day daily driver type of investment, not a car for road trippers or those that travel often unless you know there are superchargers between point A and B and have the time to stop (like charging while you stop for a meal).

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If you’re happy with good enough, then good enough is what you’ll be. Greatness requires the expectation of excellence.

Clemson fans, if I offer you 4-1 when the calendar turns to October (basically meaning Tigers go 2-1 vs. AUB, at LOU, at VT), do you take it?

Nah, 5-0 sounds better.

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Posted: 20 June 2017 10:33 AM   [ Ignore ]   [ # 14 ]
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You hit the nail on the heal about dollar cost averaging….You can get a one year old Ford Fusion, Camry are something like that for around 15-18K with under 20,000 miles. In fact, you can get 2016 Fusions for around 12-14K with low miles. My wife’s Fusion uses the Eco-Boost small Turbo that gets around 40 MPG Hwy and around 30 Mpg city…Right now the money difference is not the reason to by the Tesela…the first generation of these buyers will be the pioneers just like anything…I paid 800 for a top load VCR in 1984 but damn it I had one.

Another place that still has teeth is clean diesel.  Those cars are powerful, get great fuel economy and are damn near zero emissions.

I don’t think for one technology to succeed the other has to fail…I think battery only-cars for a long time will be mainly limited to the commuter.  Heavier duty needs like off road trucks, commercial big-rigs, planes, etc will still be petroleum based engines to handle those stronger needs.

This is just one of the many reasons I am a huge fan of the Space Program. The average Joe just doesn’t see the insane return on investment we get.  Look at New Horizons that just past Pluto. I took 10 years to get there and the damn thing’s batteries are still working great.  All those probe on Mars..all of the battery tech being created for the Space program directly impacts every one.

Great discussion…Thanks!

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Posted: 21 June 2017 02:53 PM   [ Ignore ]   [ # 15 ]
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Man it sucks to be FedEx. It is awful.

http://www.reuters.com/article/us-fedex-results-idUSKBN19B30M

Amazon accounts for less than 1% of FedEx’s business and they need us a lot more than we need them.

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