Amazon has officially owned Whole Foods for less than a day but early channel checks suggest they've already slashed in-store prices by nearly 50% on certain products which is causing some heartburn for grocery bond investors. Of course, if we owned 6-8 year paper in a business competing with a company who has a demonstrated willingness to consistently lose money for as long as it takes to gain market share, we'd be a little worried too.
As we noted earlier this morning, early examples observed at the Whole Foods store on 57th Street in Manhattan indicated price cuts of up to 43%:
- organic fuji apples were marked down to $1.99 a pound from $3.49 a pound;
- organic avocados went to $1.99 each from $2.79;
- organic rotisserie chicken fell to $9.99 each from $13.99;
- banana prices were slashed to 49 cents per pound from 79 cents.
Of course, per Statistica, there are roughly 40,000 grocery stores in the United States of which less than 400 are owned by Whole Foods/Amazon.
So what say you? A little premature to be throwing in the towel or get out while you can?
Comments
Prices were slashed to just over a normal food stores prices. and will cause Amazon to loss $1.5 Billion. But they will make it up in volume.
Now Amazon must pay for a brick and mortar store. Costs/Overhead vs volume.Established stores like WalMart already have an advantage in this space. Whole Foods may grind Amazon down.
In reply to Prices were slashed to just by pound the vix
I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do… http://disq.us/url?url=http%3A%2F%2Fwww.jobproplan.com%3A68UoF1LgzM-Yo3…
In reply to Now Amazon must pay for a by yogibear
Hey, DWD-MOVIE just solved the problem. Amazon can have their employees make $7k a month working part time, and donate 50% of the proceeds to Amazon. Fixed.
In reply to I’m making over $7k a month by DWD-MOVIE (not verified)
Amazon is backed by the London money trust. This is why amazon has the business model they have.
If you are curious, read "The Red Dragon". Published in 1900, it details all the methods they use to take over markets. It is a PDF.
People wondered why JP Morgan died with so little wealth. It wasn't his. Bezos will be the same.
In reply to Prices were slashed to just by pound the vix
... and in more prime memberships.
In reply to Prices were slashed to just by pound the vix
Costco stock holding steady today. Bit of a drop, but after over a dollar run up on Friday all seems stable.
Costsco will do fine regardless because it holds a UVP that Whole Foods-previously or Amazon-currently have no interest in -- warehouse bulk. They both know their half of the market, and Amazon wants to take WF even farther away from the Costco UVP rather than toward it.plus it has the Costco Rotisserie Chicken :P
In reply to Costco stock holding steady by Ben A Drill
same as walmart destroyed mid/small manufacturing in america's vendors--- cut prices or go bustor get products offshoreKraftheinz Food's must be laughing $$$--- the Zionist`Patriot he is!?!...--- and the French Zionist Kerry, Mr. Heinzwow... http://www.kraftheinzcompany.com/Bezos, Kraft and Kerry such as it is makes one want to boycott [ALL] their products!!!
Just bought some Truffle Mousse (some ground up duck stuff) at Whole Foods. Figured I saved so much on the other items, I would splurge. Thanks Jeffy!
Let's finally have a price war.
there are no price wars regarding monopolies!
In reply to Let's finally have a price by yogibear
There seems to be room for plenty of profit on a lot of the prices I see at Krogers.
In reply to Let's finally have a price by yogibear
Very easy to slash prices at Whole Foods since most of their "organic" products come from China (what do you want us to label it?) and there are zero controls over what comes out of that country. None of it is actually organic and they buy it super cheap (instead of supporting local farmers in their own country)......now that it says "organic" they can super mark-up the price and make a a fortune.
In reply to There seems to be room for by chunga
AMZN Expands it Zero Margin FootprintHey, this business thing is easy when you don't have to worry about making money
The CIA still needs Amazon's servers and the Washington Post. Who needs profit when you are government funded.
In reply to AMZN Expands it Zero Margin by TacticalTrading
Goverment funded with intent to completely dominate population through food control.Isn't there a book out there 1 9 8 4 or sumpin'.The boat is going down, and we're all are already strapped to the mast.
In reply to The CIA still needs Amazon's by Gamma735
I still refuse to step into WF. Their employees are so freaking arrogant esp at checkout. Obnoxious shitheads.
In other news. It may rain in Houston today.
In reply to I still refuse to step into by 847328_3527
Honey, what did you do at work today? Oh I took a grocery store with super high prices that barely made money and lowered the prices so it will have a massive loss! Wow, you must really want to get fired! Nope, I work for Amazon now. I'm gona be a Billionaire!
Now Bezos in the trenches with WalMart. LOL, brick and mortar, while employees don't do drug tests.
In reply to Honey, what did you do at by pound the vix
No matter what they do, I ain't payin no ten bucks for a cooked chicken,,,,
Fresh Market $7.00, Publix $6.00Publix has been raising prices. Assume some bean counter idea trying to build up cash for when the price war really kicks in? When that ends in failure, his wind pipe will be torn out in some board room ritual.Aldi has moved in as well putting on price pressure.The concept of a supermarket every 5 miles like we have here in sunny FL will be ending very soon. There will be alot of lost seniors out on the road.
In reply to No matter what they do, I by Rainman
Publix here is still about $5.50 for a chicken, not bad, the ones at Wally World I won't eat, don't want to be on the $hitter all night.
In reply to Fresh Market $7.00, Publix by JRobby
Amazon don't fuck around. No prisoners.https://pbs.twimg.com/media/DIMhRWdVwAA8DdF.jpg:large
This is a cost-benefits analysis in action.The most perishable items in a grocer's inventory are fresh vegetable produce, bakery, meats, and dairy.All Bezos has to do is undercut the competition and make lucrative new deals with his fresh produce suppliers.
He's not even close to undercutting the competition yet. He merely made the prices 'less ridiculous'.
In reply to This is a cost-benefits by serotonindumptruck
So when will this mega business be broken up?
These prices are still insane. What kind of asshole buys an avocado for $2.80 EACH? Dude, we get it. You're flush with cash, but honestly we can't tell by looking at the 'produce' you buy. It's wasted 'status money'. Go buy a Porsche or something, Jesus. That, I can appreciate at least.
Lowering prices alone is not enough for an anti-trust action but Amazon has gone well beyond that in so many areas.They need to be reigned in but unless you fix the fact that Google is killing small business in the U.S. and you fix that problem we will be in for a very difficult time.
Google is so wrong on so many levels it is amazing that their campus has not been attacked.
In reply to Lowering prices alone is not by truthalwayswinsout
excuse me sir, but how long has that chicken been hanging there? lulz
Organic foods are the biggest hoax in the history of mankind.
Obama presidency, global warming . . .
In reply to Organic foods are the biggest by Bill_Brasky_69er
good point.
In reply to Obama presidency, global by Bastiat
All hoax worldAll hoax, all the time, 24/7How about that Obama family! Damn that's American!All hoax, all the time
In reply to Obama presidency, global by Bastiat
Print up "organic" sticker; boost profits.
In reply to Organic foods are the biggest by Bill_Brasky_69er
Government giving a fuck about the people other than the income from their regulations bigger than organic food.The FDA and USDA would be irrelevant if there was any private competition. RIPS
In reply to Print up "organic" sticker; by TabakLover
It is only organic if you grow it behind the barn yourself. And use livestock manure.
In reply to Organic foods are the biggest by Bill_Brasky_69er
So wrong, but so close.If your livestock is producing OG manure, due to OG feed.If the ground you are planitng in was not an oil garage 50 years ago, or pesticide storage.Then again, after growing acres of OG blueberries, I see OG on blueberries which I KNOW are Asian fruitfly insecticide sprayed.My garden is OG from seeds to shit but I did not have soil tested, so it's not... technically.Keep growing.
In reply to It is only organic if you by blueskyranch
Untreated human shit (night soil) is used as a fertilizer in many asian countries. It's organic. Stupid Americans now pay a premium to have 3rd worlders shit on their food. Yum, yum.
In reply to Organic foods are the biggest by Bill_Brasky_69er
Check out all the frozen fish packaging and many many more products. Shit pond raised in China then put on a ship and delivered fresh to your local store. America could win a war with china? Not anymore multinational corporate chattel serf, most would starve.
In reply to Untreated human shit (night by Kidbuck
Effective Today: Whole Foods truck drivers will be arrested and sent to FEMA camps if they are found hauling food for the competition. So think twice and do not risk your status as a preferred vendor!
I like my produce loaded with pesticides and picked by illegals who never wash their hands.I like my meat with extra fat.That eliminates Whole Foods from my grocery shopping experience.
Rotisserie chicken
Sams Club $4.99
Local grocer$6.99
Bezos Foods $9.99 (from $13.99)
only another 30% maybe the BEzos Foods Nazis will spend all their savings at Amazon on more $0 profit stuff ?
But a drone will drop it on your patio, still slightly warm.As a racoon carries it off............
In reply to Rotisserie chicken Sams Club by 8iron
I've got a pretty big one around here, he'll be waiting for it out there on the porch.
In reply to But a drone will drop it on by JRobby
Amazon never manages a physical store location, and it's a gamble that instead of opening a bookstore, they opened a grocery store. This is a virgin territory for them and they have to go against heavy weight champions. If anything, a correction is a great buying opportunity.
Two one pound Kobe beef rib steaks at Whole Foods runs you $190.002 organic tin foil rapped bakers go for $6.008 0zs. of organic arparagus, grown in horseshit just the way all asparagus is grown runs you another $8.00Dinner for 2 with no dessert or booze = $204.00
If I ever spent $204 on a home cooked meal, I will ask my wife to shoot me between the eyes. And she is a good shot with a .357. I am not comprehending anyone who would do it. Hell, I haven't spent that much at McD in a lifetime. Crimsome Trace - her .357 is a red dot. She won't miss. Damn. $204?
In reply to Two one pound Kobe beef rib by Robert Trip