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  • Geebo 10:30 am on November 16, 2017 Permalink | Reply
    Tags: , , Whole Foods   

    Why Whole Foods’ price cuts aren’t good news 

    Why Whole Foods price cuts aren't good news

    In the run up to the Thanksgiving holiday, Amazon owned Whole Foods has announced deep price cuts on Thanksgiving staples and other products. Whole Foods has even gone so far as to say that the price cuts are permanent. This announcement has caused concern among other grocery outlets causing a number of their stocks to drop.

    However, things may not be as rosy as Whole Foods would have you believe. according to financial experts at Barclay’s, Whole Foods saw a decline in foot traffic after their initial sale to Amazon. Shoppers were curious at first to see how the new Whole Foods was, but now foot traffic into their stores has leveled off which could have triggered the new price cuts.

    These deep price cuts may be having a human cost as well. Many stores in the chain are said to have been reducing staff in order to compete. The stereotypical Whole Foods shopper seem to be more socially conscious than other shoppers. If they realize that their discounts are coming at the cost of jobs, that could definitely have an impact on Whole Foods bottom line. Would you want to shop in a store that was laying off employees just in time for the holidays?

     
  • Geebo 9:04 am on October 25, 2017 Permalink | Reply
    Tags: , , , Whole Foods   

    Are big retailers trying to squeeze out Whole Foods? 

    Are big retailers trying to squeeze out Whole Foods?

    According to a report from Reuters, Amazon is facing an uphill battle when it comes to not only opening new Whole Foods locations, but also what they can provide in existing locations. Many big box retailers such as Target and Best Buy have leasing agreements with their stores’ property owners that can limit what other stores can do.

    For example, Many Target stores have a clause in their leasing agreements that prevents nearby stores from providing lockers where they can pick up online orders. That was one of the main reasons as to why Amazon bought Whole Foods in the first place. Some Best Buys have clauses that prohibit electronics from being sold on less than 250 square feet of floor space. This could inhibit Whole Foods from selling Amazon’s Echoes and Kindles. Bed Bath and Beyond also has a clause that prevents some nearby stores from selling linens and other housewares. Many of the stores’ spokespeople say this is a common business practice when it comes to multi-store properties.

    However, Amazon should never be counted out. Considering they took a simple book selling website and it turned it into the world’s largest online retailer they’ve face hurdles like this before and have always come out on top.

     
  • Geebo 9:00 am on August 30, 2017 Permalink | Reply
    Tags: , , Whole Foods   

    Amazon springs new prices on Whole Food customers 

    Amazon springs new prices on Whole Food customers

    In our weekly update of Amazon trying to take over the world, Amazon finally took the reins of Whole Foods this past Monday. In doing so, Amazon dropped prices substantially almost across the board. They did this without any warning or any marketing building up to the launch. In terms of advertising, this was a brilliant move by Amazon considering the word spread like wildfire through both traditional and social media.

    Along with the price cuts, Amazon also supplied the Whole Foods stores with discounted Amazon Echoes and Dots, their line of voice activated smart speakers. Amazon is also said to be offering additional savings to members of their Amazon Prime service as well.

    Reaction by consumers has been mixed. People that already shop at Whole Foods are appreciative of the price drops and people who were on the fringe of shopping there are willing to now give it a try. Many people are still priced out of Whole Foods as the store is trying to shake its derogative nickname of Whole Paycheck.

    While not giving it the national reach of WalMart, it’s another domino falling in Amazon’s plan to control retail space. However, Amazon will be offering Whole Food products on their website where they already dominate. While WalMart and other national chains shouldn’t be shaking in their boots just yet, Amazon is slowing taking pieces out of their market share.

     
  • Geebo 8:58 am on June 20, 2017 Permalink | Reply
    Tags: , , Whole Foods   

    Are we headed for a retail duopoly? 

    Are we headed for a retail duopoly?

    Wal-Mart is the number one retailer in the US with a substantial web presence. They see Amazon as their greatest competitor. Amazon is the number one online retailer and they’ve been looking to get into the physical retail space. They see Wal-Mart as their greatest competitor. Now, Amazon is firing a shot across Wal-Mart’s bow as they are in the process of acquiring organic grocery store Whole foods.

    While not even coming close to Wal-Mart’s almost 5,000 locations across the country, including Wal-Mart Neighborhood Market and Sam’s Club, this acquisition would give Amazon a substantial foot in the door in the country’s grocery market. With its already popular online business, with just 400 possible new locations it actually could give Wal-Mart a run for its money if they’re also used as small distribution or pick up centers for online orders. Not only that, but Amazon could also end up taking a piece out of Wal-Mart’s grocery share in the country, which is where Wal-Mart makes most of their money.

    What could be worrying is Wal-Mart’s response to Amazon’s potential acquisition. A lot of brick and mortar store chains have crumbled under the might of the Wal-Mart. Sears and K-Mart used to be giants in the industry. Sears alone has been around since the 19th century, but is now facing the spectre of closure. If this trend continues, we could all end up shopping at either a Wal-Mart or Amazon branded store in the near future. Competition always breeds innovation in business, but a near monopoly between two retail monoliths will cause not only stagnation, but will also allow the two corporate giants to become complacent in their pricing.

     
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