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Amazon Says It Won't Replace Whole Foods Cashiers With Computers... Yet (cnbc.com)

An anonymous reader shares a report: Amazon said it has no current plans to automate the jobs of cashiers in Whole Foods stores after it finishes acquiring the grocery chain. It also isn't planning any layoffs, according to a spokesperson. There is some speculation, however, that Amazon may change its plans and use new technology inside of Whole Foods locations. Commenting on Amazon's announcement from earlier today, LinkedIn CEO Jeff Weiner said, "Only one company on earth can buy grocery chain, be rumored to buy enterprise software company & in both cases be lauded for strategic vision."

59 of 109 comments (clear)

  1. Yeah sure they won't by Anonymous Coward · · Score: 1

    Every company that ever bought out another company always starts out with saying "Oh no worries we aren't going to change anything or lay anybody off!" and then six months or so later they do precisely that.

    Whole Foods may be pricey (which is why I only buy a few things there I can't find anywhere else; who does all their shopping in one store?), but Amazon will be making a mistake if they turn it into Just Another Grocery Store. There are aspects to Whole Foods that distinguishes it from other grocery stores and if you take those things away then it just fades into the background noise.

    1. Re:Yeah sure they won't by HornWumpus · · Score: 1

      What kind of insane PE ratio did they pay for 'Whole Paycheck'?

      Their 'chump list' is worth a fortune, but still?

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:Yeah sure they won't by arth1 · · Score: 2

      Yes, "stuff that others don't have" like old world coffee is why I go to Whole Foods, Fresh Market and similar stores.

      For regular groceries, they are much worse than regular supermarkets, both for price and quality. Staples like bread, milk and produce tends to be truly old compared to bigger stores with faster churn. And their meat and fish departments are staffed with people who have no idea what they're doing, and couldn't butcher a carcass or filet a fish without cutting bones if their life depended on it.
      So specialties, and mostly imports, is where it's at.

    3. Re:Yeah sure they won't by PopeRatzo · · Score: 5, Funny

      What kind of insane PE ratio did they pay for 'Whole Paycheck'?

      When I saw the headline that Amazon spent $13.4 billion on Whole Foods, I just assumed that they bought a large guacamole, two fruit cups and a dozen eggs.

      --
      You are welcome on my lawn.
    4. Re:Yeah sure they won't by acrimonious+howard · · Score: 5, Funny
      Don't believe mainstream media! A reliable source told me what really happened:

      Bezos: Alexa, buy me olives from Whole Foods.
      Alexa: Sure, buying all of Whole Foods.
      Bezos: Shit.

    5. Re:Yeah sure they won't by wyHunter · · Score: 1

      It just points out what we right wingers have been saying for ages: institutional left wingers are nothing but elitists.

    6. Re:Yeah sure they won't by arth1 · · Score: 1

      It just points out what we right wingers have been saying for ages: institutional left wingers are nothing but elitists.

      You're saying that as if it were a bad thing?

    7. Re:Yeah sure they won't by wyHunter · · Score: 1

      If you believe in an egalitarian world where equality of opportunity matters, yes it is.

  2. Why not? by grumpy-cowboy · · Score: 3, Insightful

    With a 15$/hour minimum wage, they will probably change their minds.

    --
    Will $CURRENT_YEAR be the year of the Linux Desktop?
  3. What's the purpose of this acquistion? by FilmedInNoir · · Score: 2

    Whole Foods is all hippy-dippy Earth loving stuff I thought. What would Amazon want with that? It's like Walmart buying out an Amish quilter and saying they have no plans for a factory. No duh! They can't go high-tech, it would defeat the purpose of why it was successful in the first place.

    --
    Sig. Sig. Sputnik
    1. Re:What's the purpose of this acquistion? by HornWumpus · · Score: 2

      'Whole Foods' knows who the people dumb enough to shop at 'Whole Foods' are!

      Think about that for a second. There's only one explanation: Amazon is going into the Cherokee Hair Tampon business.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:What's the purpose of this acquistion? by godrik · · Score: 1

      Who knows, but it makes sense. Amazon has been interested in having brick and mortar stores for a while. And they are also interested in grocery delivery.
      I see two angles:
      -use the Whole Foods network to serve as relay point for their regular deliveries
      -add a food delivery department to Whole Foods

    3. Re:What's the purpose of this acquistion? by HornWumpus · · Score: 2

      had...until they went to WF.

      What matters is the money you keep. Shopping at whole foods is like buying $350 pre distressed bluegenes. Sure some people do it because they don't care about $350, the other 99% are trying desperately to be mistaken for those that don't care about $350.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:What's the purpose of this acquistion? by EvilSS · · Score: 4, Insightful

      Whole Foods is all hippy-dippy Earth loving stuff I thought. What would Amazon want with that? It's like Walmart buying out an Amish quilter and saying they have no plans for a factory. No duh! They can't go high-tech, it would defeat the purpose of why it was successful in the first place.

      Brick and Mortar locations with decent brand recognition (and, among their target customers it's a well liked brand) in high-income areas with a lot of cross-over with their existing customer base (You think hippy-dippy upper-middle class buyers don't also use Amazon?) They can also use these locations and their existing back-end to expand their grocery delivery business and get real experience in retail.

      --
      I browse on +1 so AC's need not respond, I won't see it.
    5. Re:What's the purpose of this acquistion? by Hadlock · · Score: 1

      Whole foods has a pretty incredible IT department, they have oodles of data back to at least the late 90s on every customer, purchase, and analysis of purchasing habits etc etc. They're a very big customer of Oracle's. It's hard if not impossible to buy that kind of dataset, and if you intend to move in to, own and dominate brick and mortar retail, you need decades of consumer data from many regions. Also they get access to a massive distribution network and long standing vendor relationships. Total slam dunk.

      --
      moox. for a new generation.
    6. Re:What's the purpose of this acquistion? by HornWumpus · · Score: 1

      Like I said upthread: The chump list...

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    7. Re:What's the purpose of this acquistion? by Anonymous Coward · · Score: 1

      Whole Foods is all hippy-dippy Earth loving stuff I thought.

      It thought that was Trader Joe's. "Whole Paycheck" is for snobs and hipsters who think that they have gluten sensitivity.

    8. Re:What's the purpose of this acquistion? by omnichad · · Score: 1

      They found out there was money in the banana stand. So they bought a bigger banana stand.

    9. Re:What's the purpose of this acquistion? by omnichad · · Score: 1
    10. Re:What's the purpose of this acquistion? by sound+vision · · Score: 1

      And all of them are trying to look like someone with no more than $3.50.

    11. Re:What's the purpose of this acquistion? by Notabadguy · · Score: 1

      had...until they went to WF.

      What matters is the money you keep. Shopping at whole foods is like buying $350 pre distressed bluegenes. Sure some people do it because they don't care about $350, the other 99% are trying desperately to be mistaken for those that don't care about $350.

      What about the people who care about $350 but don't wear blue jeans?

  4. Re:Push that drive for $15! by Anonymous Coward · · Score: 1

    If they'll eliminate it to save $15/hr, they'll eliminate it to save $5/hr

    Keep begging your masters. Maybe if you agree to work for $2/hr (and say pretty please with a cherry on top) they'll keep you on.

    Now about those tax cuts...

  5. well in some sates self checkout does not wic /ebt by Joe_Dragon · · Score: 2

    well in some sates self checkout does not take wic / ebt

  6. They'll replace cashiers with Echo Dots by JoeyRox · · Score: 2, Insightful

    Echos are more productive, complain less, and don't show up to work with tattoos

    1. Re:They'll replace cashiers with Echo Dots by WrongMonkey · · Score: 2, Insightful

      What's wrong with tattoos? Does your food taste different if the cashier had some ink done?

    2. Re:They'll replace cashiers with Echo Dots by Anonymous Coward · · Score: 1

      Echos are more productive, complain less, and don't show up to work with tattoos

      ...yet.

    3. Re:They'll replace cashiers with Echo Dots by 0111+1110 · · Score: 1, Interesting

      Tattoos are ugly. Yes all of them. But I guess it's no worse than hiring ugly cashiers. It's not like every cashier at whole foods is a hot girl. Although if I were in charge they would be. Obviously robot babe cashiers would be better than human ones though.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
    4. Re:They'll replace cashiers with Echo Dots by WrongMonkey · · Score: 2

      I'm going to guess that at least half of people who shop at grocery stores aren't actually interested in oogling hot girls. Maybe that's why your not in charge of hiring practices.

    5. Re:They'll replace cashiers with Echo Dots by JoeyRox · · Score: 1

      Nope, my food doesn't taste any different. Then again, you can't taste hepatitis.

    6. Re:They'll replace cashiers with Echo Dots by 0111+1110 · · Score: 1

      Lots of managers seem to favor hot girls. Actually I suspect that all heterosexual male humans who hire people choose the beautiful girls first. It's just human nature to favor what is beautiful. Of course I think robots can be beautiful too.

      --
      Quite an experience to live in fear, isn't it? That's what it is to be a slave.
  7. DRONES by Thud457 · · Score: 1

    Eat your broccoli.
    President Bezos's secretary of Agriculture will mandate daily drone delivery of fresh broccoli to every American. Grandmas will be crushed under mountains of uneaten broccoli.

    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  8. Alexa tie-in by Eustace+Tilley · · Score: 1

    "Alexa, add Beyond Burgers to my Whole Foods pickup box. Alexa, add Fabainaise Classic 32 ounce to my Whole Foods pickup box. Alexa, add Field Roast Herb Chao slices to my Whole Foods pickup box. Alexa, schedule my Whole Foods pickup for Saturday morning."

  9. Bezos by clonehappy · · Score: 1

    Exactly the kind of psychopath I want involved in my food supply.

  10. part of the attraction of shopping at Whole Foods by turkeydance · · Score: 2

    is being Seen there, just like some people want to be Seen in church. Amazon might mess with that aspect.

  11. Standard Acquisition process: by netsavior · · Score: 3, Insightful

    This is standard process for any acquisition:

    Step 1: Assure all employees of both the acquired and the parent company that their job is safe.
    Step 2: Assure the public that it is business as usual.
    Step 3: https://hardware.slashdot.org/... all your employees in potentially redundant areas fill out "Skill matrix" or other bullshit evaluations
    Step 4: Make a shocking, totally unexpected, totally unpredictable move to lay off redundancies to the point where you can't properly function
    Step 5: Bring in inexpensive contractors/scabs to bring the business back up to minimal function as you ring money out of the asset at peak efficiency.

    1. Re:Standard Acquisition process: by netsavior · · Score: 1

      huh, no idea why that link is there, I blame the totally necessary feature of drag-drop text manipulation on browser text-boxes.

    2. Re:Standard Acquisition process: by omnichad · · Score: 1

      But it does make you wonder why they chose hardware.slashdot.org for this story.

  12. First business, by SYSS+Mouse · · Score: 2

    block customer from checking competitors' price online.

  13. I for one welcome our new self-checkout overlords. by Killall+-9+Bash · · Score: 2

    Please place the item into the bag.

    Please place the item into the bag.

    Please place the item into the bag, YOU HAVE 10 SECONDS TO COMPLY!

    --
    "Prediction: within 10 years, Windows will be a Linux distribution." Me, 7-6-2016
  14. Nana...? Is That You...? by RobotRunAmok · · Score: 1

    >>Buying groceries is one of the few things I prefer human interaction on.

    Why? Human interaction on the grocery line?? My grandmother liked human interaction on the grocery line, but she was old and doddering, so we all kind of understood. My daughter was a cashier at a grocery store for one summer. People like you who try to strike up some human interaction scared the daylights out of her. I bought her a pepper spray canister, to keep in her apron. It made her feel safer.

    1. Re:Nana...? Is That You...? by Austerity+Empowers · · Score: 1

      I bought her a pepper spray canister, to keep in her apron. It made her feel safer.

      A part of me looks forward to the day when the cashier, required by management to say "How are you!" (exclamation point, not question mark, they don't care) gets pepper-sprayed by customer who doesn't want human interaction, and then the bag-boy (I'm in the south, we have them, not always boys, not always quite human) has to pepper spray back.

      This would be only slightly more lively than the whole "Happy Holidays" brouhaha, which might involve heavier weapons.

  15. Re:Push that drive for $15! by bluefoxlucid · · Score: 2

    You can't eliminate a position to save $15/hr unless that position is useless and the person there is a welfare case. You have to replace the technology with less-expensive technology and reduce labor hours that way.

    Let's say the total labor involvement to design, build, maintain, fuel, and operate a machine over its entire lifetime is equivalent to having $9/hr employees provide the replaced business activities. That is to say: the wage time invested, total, across that machine's entire existence, is equivalent to the wages of $9/hr employees producing the same things the machine does. In that case, replacing $15/hr employees with this saves you $6/hr per employee.

    If your employees are $5/hr, it costs more to use the machine.

    As technology improves over time, eventually you have those $9/hr employees making $11/hr, but the machine only costs $10.25/hr. At that point, it's cheaper but not necessarily strategic to replace the employees.

    If you predict the technology will fall in price to $7/hr in the next three years and those machines have a 15-year ROI, you may find it most-profitable to keep your $11/hr employees for a few more years. Then you have $11.70/hr employees (2% per year raise), and a $7/hr machine. Now you start rolling out the machines. You've avoided being locked into a $10.25/hr TCO with only minimal opex.

  16. Of course they'll be layoffs by rsilvergun · · Score: 1

    at the very least their IT staff will get the axe as they merge their network with Amazon's. Accounting & HR will go next for the same reasons. That's just what you do when you merge. You remove redundancies.

    Automation will come later, but it'll come. Probably not the checkout. If you're spending twice as much on groceries you're probably expecting somebody to check you out. Unless they implement some kind of grab and go system (or just close the storefronts entirely in favor of delivery).

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  17. So...how will they replace Whole Foods customers by SnarkSide · · Score: 2

    I could sometimes stomach Whole Foods when they were their own entity, but I'm not interested in my grocery dollars going into Amazon's pocket. Even more so, I'll go out of my way to frequent local specialty markets. I imagine many Whole Foods shoppers being turned off by Amazon's involvement. If the demographics shift they will not be able to maintain the current standards.

    I'm a little surprised investors seem to think this is such a great idea. It will be sad if they ruin a good business that a lot of people value.

  18. Re:well in some sates self checkout does not wic / by desdinova+216 · · Score: 1

    I also find the self checkout useful if you're using multiple payment methods, for example if you're purchasing something for an elderly relative.

  19. Re:Sort of .... by HornWumpus · · Score: 1

    You can make a bong out of anything.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  20. self check-out makeHarder To Prosecute Shoplifting by Joe_Dragon · · Score: 1

    self check-out makes Harder To Prosecute Shoplifting even more so with some kind of no scan self checkout system.

  21. Re:I for one welcome our new self-checkout overlor by habig · · Score: 1

    Please place the item into the bag.

    at the WF near me, you don't need to use a self checkout machine to get this interaction (minus the Robocop bit). There are signs up saying something about "don't make our employees put things in bags for you to save them from repetitive stress injuries". And the employees give you the evil eye if you don't Comply Immediately With the Sign. So, you get to pay more for your food while getting less service.

  22. Whole Amazon by neoRUR · · Score: 1

    So this will be the Whole of Amazon?

  23. Re:So...how will they replace Whole Foods customer by enjar · · Score: 1

    The CEO of Whole Foods is pretty conservative/libertarian. If you assume Whole Foods customers are tree hugging greenies who have Greenpeace stickers on their Volvos and aspire to join a commune, they don't seem to mind. They might welcome that their market is being bought by the same guy who owns WaPo, which has all those journalists and editors going after Trump. Of course, those local specialty markets have largely been run out of town by Whole Foods or Amazon already. Unless, of course, they were an upmarket grocery chain that was already bought by Whole Foods years ago. Sources: John Mackey https://en.wikipedia.org/wiki/... Jeff Bezos https://en.wikipedia.org/wiki/...

  24. Re:part of the attraction of shopping at Whole Foo by Anonymous Coward · · Score: 1

    If anything you'll be seen more, after Amazon installs more surveillance to datamine shoppers.

    Not to mention the automatic updates of your visits they'll post to your social media after hijacking your in-store internet traffic.

  25. Computs will never replace... by OrangeTide · · Score: 1

    white kids with dreadlocks.

    --
    “Common sense is not so common.” — Voltaire
    1. Re:Computs will never replace... by sound+vision · · Score: 1

      They already have computers that will play Sublime 24/7. Just wait until they invent a bong-smoking machine, they'll be out of a job too.

  26. Costco has ... by PPH · · Score: 1

    ... 100% organic cashiers.

    --
    Have gnu, will travel.
  27. Re:Sort of .... by ShanghaiBill · · Score: 1

    Self-checkouts are improving rapidly. You might want to try again. Where I get my groceries, self-checkout is always faster. There are 4 self checkouts, usually with no wait, and 1 or 2 staffed checkouts with a few people in line, who I assume are either luddites or are buying booze and cigarettes.

  28. Re:Sort of .... by SvnLyrBrto · · Score: 1

    It's even worse in my area. The main grocery chain here (Safeway) started charging for grocery bags a few years back. So, not appreciating being nickel-and-dimed to death, most people (inluding myself) now bring reusable cloth bags (Which, to be fair, are also more environmentally friendly and all that... yay.). But it's totally bulloxed up the self-checkouts even more. When they could rely on customers mostly using the free store-provided bags, they could at least rely on the bags all having the same weight and pre-program that into their system. Now the cloth bags are heavier and have more variability in their weight, which gives the scale, thats there to make sure you're ringing up your items before bagging them, no end of issues. So when I start checking out and bagging my stuff, that scale messes up and gives me the "unexpected item in bagging area, please wait for assistance from an associate" error every... goddamned... time. It does it to just about everyone else too. And going to the real cashiers is seldom an option, because the stores are also trying to cheap out on labor and understaffing, making those lines unreasonably long.

    I've taken to making sure I scan something really heavy and non-breakable first and, wenever the self-checkout stops for that weight discrepancy, picking up my bag and slamming it down from a couple feet a few times in mock confusion and not-so-mock frusteration. This usually prompts the employee overseeing the self-checkout to quickly override the scale from their terminal to make it stop the nonsense. Hopefully, I'm also knocking it out of calibration, making the employee more likely to also quickly override it for the next guy and making things easier on everybody, and hopefully costing them at least a little bit more in maintainence.

    --
    Imagine all the people...
  29. Re:So...how will they replace Whole Foods customer by sound+vision · · Score: 1

    Mostly, Whole Foods shoppers are worried about things like celiac disease (that they don't have). Also, as many Greenpeace Vegans they have, there are just as many Trumpkin Paleo guys.

  30. No plans - right! by woboyle · · Score: 1

    Two weeks before Microsoft closed its takeover of Nokia Mobile Phones where I worked at the time, they assured all the employees that there would be no layoffs and everyone had a secure position. Two weeks after the takeover was complete, they laid off 20,000 of us... Our entire division was decimated and basically shut down. I wonder what happened to the 100 million customers we were serving?

    --
    Sometimes, real fast is almost as good as real-time.
  31. Re:So...how will they replace Whole Foods customer by SnarkSide · · Score: 1

    Valid point, ignorance is bliss.