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  1. #1
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    Amazon buys Whole Foods for 13.7 Billion

    Amazon continues its push to get into groceries and this could help with the ability to have short delivery times for groceries with more physical locations now.

    I also hold a position in Costco and while it was thought to be fairly " Amazon-proof", they are taking a hit. I glanced at another grocer, Kroger, and they were down 15%. Amazon clearly scares everyone when they set their sights on something.
    Last edited by bassnpro1; 06-16-2017 at 09:19 AM.

  2. Member
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    #2
    I am wondering what the effect this is going to have on commercial retail properties in the long term. Malls are already in trouble and a lot of the strip shopping centers are anchored by grocery stores and big box retailers. If these centers lose these anchors then these centers are going to fail. The next ten years are going to be very interesting. The landscape in real estate is definitely going to be very different in the shopping center mall segments.

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    #3
    Even CVS stock is getting affected. I guess the online pharmacy is going to be next for Amazon. Nothing in retail seems to be safe.

  4. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
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    #4
    Looks like a good time to "Go Krogering" if you remember the old jingle. Down 19% yesterday and down 11% today. That's more than 25% off the regular price. Sounds like a deal to me.
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  5. Member
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    #5
    Quote Originally Posted by CatFan View Post
    Looks like a good time to "Go Krogering" if you remember the old jingle. Down 19% yesterday and down 11% today. That's more than 25% off the regular price. Sounds like a deal to me.
    Maybe in the short term. Amazon rightfully scares the market because they have a history of dominating every industry they go into. Kroger needs to generate profits to keep the share price up. Amazon hardly cares if it makes a profit, they just want to capture market share and grow. Other companies can't compete. Kroger's margins are definitely going to get squeezed some.

  6. Stocks/Investments Moderator boneil's Avatar
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    #6
    I picked up some COST for a trade. Costco shoppers are not Whole Food shoppers. And I think CVS and Walgreens are in trouble. Amazon has been surveying and I think they are seeing that 40-50% of people would buy their drugs from Amazon.

    At what point does the FEC step in and stop Amazon from monopolizing everything?

    And rather funny is that Amazons market cap increased today by over 14 billion. They basically got Whole Foods for free.
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  7. Member Quillback's Avatar
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    #7
    Quote Originally Posted by boneil View Post
    And rather funny is that Amazons market cap increased today by over 14 billion. They basically got Whole Foods for free.
    Yep, pretty amazing.

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    #8
    Quote Originally Posted by NitroZ7 View Post
    I am wondering what the effect this is going to have on commercial retail properties in the long term. Malls are already in trouble and a lot of the strip shopping centers are anchored by grocery stores and big box retailers. If these centers lose these anchors then these centers are going to fail. The next ten years are going to be very interesting. The landscape in real estate is definitely going to be very different in the shopping center mall segments.
    Many retail stores, especially the grocery stores, are huge real estate investors and contractors. Walmart is probably the largest. Walmart's now the giant in groceries even though their prices are not nearly as competitive as Aldi's. And those investing in malls are making a mistake as many societies where malls are located deteriorate 10-12 years after housing is built and owners sell and move out another county.

    With incredibly low profit margins of grocery stores (even Whole Foods), it's going to take the GNP of a small country to ever repay Amazon's initial investment in Whole Foods.

  9. RIP Evinrude 1907-2020 JR19's Avatar
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    #9
    Amazon getting into the grocery business is old news. In 2007 (10 years ago) they started Amazon Fresh. In select cities you can go to the Amazon website and order your groceries and have them delivered. Go to the Amazon website and put Amazon Fresh into the search feature.