Amazon – Whole Foods

So Amazon has agreed to buy Whole Foods. It’s an interesting agreement. Amazon is for the early 21st century rather what Sears and/or Montgomery Ward was to the old west. The purveyor of everything that you can’t find in the old general store. If you remember the old ‘wish book’ (the Christmas catalog) you’ll know what I mean. Man, when I was a kid, there were things in that catalog that I never knew they made, and that was the toy section! 🙂

You and I know that Amazon is like that too. They got stuff there that I never dreamed of, and it may be the best bookstore short of robbing the British Library. Yes, my friends who write books are not fond of them, but for me, sitting out here on the prairie, they are a boon.

Strangely enough, even in food. A few months ago my local grocery store was bought. That saddened me, I’ve liked it for years, pretty good quality and not bad pricing. A dream for a small town. Anyway, since the new owner took over the quality is reducing (in fact, a couple weeks ago, I had one of the worst steaks I ever had, from there for $10/pound. Not worth it was an understatement. Canned goods are another example, established, OK quality brands gone, replaced by cheap stuff, at high prices.

Anyway, there is a Wal-Mart about 15 miles away, that can solve the canned goods, without too much hassle, but I don’t much care for their meat. Well, as always planning helps. 60 miles away are other stores, good ones. There are also the friends of mine that raise cattle, a quarter or half of a cow custom-packed is always an option. And there is Amazon.

Funny thing is that for what I pay for a steak here, if I watch the sales I can buy from Omaha Steaks, either their website or Amazon. Yeah, surprised the dickens out of me too. Not on Amazon but there is a site I stumbled across where I can get English bacon for the same money I pay for (not very good, too much fat) American bacon.

Stuff, I haven’t seen in years, like B&M Beans (and Boston brown bread). Didn’t know they were still made. In my cart, hope they’re as good as I remember. Branson Pickle from the UK, same with Mincemeat tarts, hardly buyable in the US anymore. In some ways, I’m spending the same to a bit more money, but buying much higher quality.

Prices are basically from 15% below what I pay here to 20% or so higher, and the UPS guy puts them on my front porch. Doesn’t get much more convenient than that.

So, how does Whole Foods fit into that? Well, we’ve all heard the jokes about Whole Paycheck stores. My closest one is about 300 miles, so I’ve never been. Who knows? Kristin Wong has some thoughts.

It’s too soon to say what Amazon officially plans to do with Whole Foods, but rumors have been circling and experts have a few predictions. For one, it’s likely that Whole Foods will actually drop its notoriously high prices. Believe it or not, Whole Foods has already been testing price reductions on certain products due to competition from Walmart and Trader Joe’s. This could be good news even if you don’t shop at Whole Foods. Analysts say other grocery stores will probably lower their prices and improve their loyalty programs to keep up with the acquisition. CNBC reported:

“This transaction is going to change the landscape of how you buy food,” Mickey Chadha, Moody’s vice president and senior credit officer who covers Whole Foods, told CNBC’s “Squawk Box” on Monday morning. He expects Amazon to put pressure on grocery stores to lower prices.

They add that the merger is probably even better news for Amazon Prime and Fresh customers, who usually get Amazon’s best deals. Moneyish reported:

“Coincidentally, Whole Foods is slated to roll out a loyalty program of its own later this year and those enrolled will likely get direct discounts on select products. “They will push pretty heavily to integrate Whole Foods with Amazon, I’m sure there’ll be Prime rewards for shopping at Whole Foods,” Barnett says.”

Guess we’ll see. Given a rational price structure, it might be a godsend for people like me. Several Whole Foods are well within overnight delivery range. And if there is one thing Amazon (especially Prime) is good at, it’s delivery logistics.

Interesting world, ain’t it?

Advertisements

About NEO
Lineman, Electrician, Industrial Control technician, Staking Engineer, Inspector, Quality Assurance Manager, Chief Operations Officer

4 Responses to Amazon – Whole Foods

  1. Just to let you know I made a link in my recent post to your blog. Have a great day!

    Liked by 1 person

    • NEO says:

      Yay! Thanks, unlikely to be long before the favor is returned!

      Liked by 1 person

      • Anytime! It’s a great blog and that picture really got me thinking.

        Liked by 1 person

        • NEO says:

          Yep, it struck me, as well.

          Liked by 1 person

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s