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Amazon's Whole Foods Price Cuts Brought 25 Percent Jump In Shoppers (bloomberg.com)
According to Foursquare Labs, which compiled location information from shoppers' mobile devices during the first two days after Amazon completed its acquisition of Whole Foods and compared the data with the same period a week earlier, the electronic commerce company boosted customer traffic to Whole Foods by 25 percent. Bloomberg reports: Amazon acquired the upscale chain last month for $13.7 billion, a move that has brought turmoil to the supermarket industry and sent shares of grocery rivals tumbling. The same day it completed the acquisition, the e-commerce giant cut prices by as much as 43 percent on a range of items. Organic fuji apples were marked down to $1.99 a pound from $3.49 a pound, for instance. Organic avocados dropped to $1.99 each from $2.79. The traffic data is an optimistic sign that Amazon can succeed in the brick-and-mortar world. In some areas, the jump in customers was dramatic. At stores in Chicago, 35 percent more shoppers visited Whole Foods stores, Foursquare found. It's not surprising that curious shoppers visited the stores immediately after the takeover, particularly after a bevy of media coverage, according to Jennifer Bartashus, an analyst at Bloomberg Intelligence. What's left to be seen is whether they will start consistently shopping more at Whole Foods stores.
Come to S. Florida. There's avocado trees everywhere and they're free.
And these are the big ones. Not the little Mexican things you get at chain supermarkets.
"Organic fuji apples were marked down to $1.99 a pound from $3.49 a pound, for instance."
No.
Organic fuji apples were marked down from $3.49 to $1.99 a pound, for instance.
FTFY
So, they cut prices by "as much as 43%", presumably cutting profit by a larger percentage (if cost of goods sold is fixed). And they increased "shoppers" by 25%, whatever that means and what it means for sales.
It sounds like the price cuts have only reduced the bottom lime. And though there's not enough info may have haven decreased the top line while increasing COGS. wtg Amazon.
We're losing money, but we'll make it up in volume.
The success of such marketing would undoubtedly shrink expenses and allow lower pricing to achieve the same margins... at least until dominant market share is achieved.
Happiness in intelligent people is the rarest thing I know.
Ernest Hemingway
How many of those people were just checking out what actually changed prices? Let me know those numbers again in a few months, then I'll be impressed.
-Unresolved symbol? Byte me!
Now Amazon Robotics, was founded by former Webvan employees. Webvan failed because it could not get food to customers before it rotted. The plan was to build miles and miles of conveyor belts. The founders of Kiva Systems learned from those mistakes and built a better way.
Amazon's move to buy Whole Foods means the technology is now mature enough to lay waste to established grocery market players. Think this is an exaggeration? Make sure you check out some Kiva robots in action before coming to that conclusion.
Sdelat' Ameriku velikoy Snova!
Organic fuji apples were marked down to $1.99 a pound from $3.49 a pound, for instance.
What about the inorganic apples?
Charge more! Much more! Then you only need to a few apples to stay profitable and think of the cachet for those buyers. "Oh yeah, that's my $1,000,000 apple. Have a bite."
streetcorner produce stands infront of the verry fields they grew from.
FARMER"S MARKUP more expensive than WHOLE PAYCHECK sometimes. The benefit of union grocers was supposed to be for savings to customers by mass purchase but all I ever saw were shelved products not an expansive cheap produce. Where are the price fixxing and monopoly anti-trust whistlers?
BEAM. ME. UP! (rip Trafficant).
How from the summary did you get they switched apples? It said pretty plainly they are still the organic apples, just reduced in price... it's not like Whole Foods has switched to selling non-organic apples (which would be plastic and rebar, presumably).
"There is more worth loving than we have strength to love." - Brian Jay Stanley
"curiosity" shoppers most likely. I'd prefer to wait a couple months to see if it lasts.
How from the summary did you get they switched apples? It said pretty plainly they are still the organic apples, just reduced in price... it's not like Whole Foods has switched to selling non-organic apples (which would be plastic and rebar, presumably).
Not plastic.
Plastic is organic.
No one forces you to work for ANYONE. I know several VERY WELL OFF people, that from their teens through mid 50's, worked for "Walmart". Didn't make much working there, but RETIRED very well off in their mid 50's. Sometimes, you work for little, but make it up on the back end. That is, if you are smart and invest properly.
I went over to Whole Foods to check out not the prices (which haven't changed that much) but the Amazon Echo/Dot display. I heard a rumor that Amazon took their entire inventory offline to stock Whole Food stores with towering pyramids of Echos and Dots for shoppers to worship Alexa. Not at my local store. They had a small table tucked off to the side of the entrance. I then went over to the Amazon Bookstore and their Echo/Dot display was even smaller. So much for a flagship product.
How about single piece aluminum chassis apples?
What is "organic food" anyway?
As in, how is the term legally defined?
An enigma, wrapped in a riddle, shrouded in bacon and cheese
Whole Foods wifi sucks. It's censored and I'm convinced the porn filter keeps DNS logs. I should be able to watch granola girl porn in the Whole Foods if I want to.
Lucky for me there are condos above the store and everybody has xfinitywifi. Thank you Comcast.
The higher prices keep out the EBT "Raider Nation" and Red-Man monster truck demographics. There's no mumu-wearing land-manatees on mobility scooters blocking the aisles.
I'm not sure about these. How do these compare to the artificial, plastic apples and avocados?
It's clear that lower prices bring more shoppers, but then so does hyping a brand all over the media. Assuming that the 25% increase is correct (I didn't RTFA) attributing that exclusively to lower prices is probably unsupported by the evidence.
WF are great, but they were just *stupidly* expensive, so much so I couldn't justify how much they cost.
If they bring their prices down, I'll be there normally.
By the USDA?
Sheeple, stooges, marks, etc...
foursquare still exists...
what.the.fuck. ::MiNd bLoWn::
I recently read an article in which they picked five common household items and checked Whole Food's prices against five local stores; only one of the local grocery chains came to a higher total. So in other words there is no price war happening.
Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
That would be WHO, but not HOW.
An enigma, wrapped in a riddle, shrouded in bacon and cheese
To many people, if the price is lower it isn't the same.
Cheap storage VM.
Obviously food that contains carbon.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
It's based on what pesticides and fertilizers you use on the crops.
Inputting a step function results in output ringing. Wait until the ringing settles down.
So Foursquare doesn't even try to hide the fact that they record their users' every move? This is a really disturbing precedent. Why would anyone allow them to do that? Is Foursquare paying them for this valuable marketing data? This is just insanity to me.
But the closest one is in CtPaTown. Unfortunately I live in SoDoSoPa. I would have to drive 30 miles to get to CtPaTown and it's just not worth it.
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https://www.buzzfeed.com/kevin...
I think it's obvious... oh yeah they are selling groceries, oh yeah they did get 25% more shoppers in 2 days using aggressive price policies? Good for them, but how is this news for nerds? How!?
They have a list of criteria. If you meet all of the criteria (and I'm sure pay some "small" administrative and logo licensing fees) then you get certified.
There's been occasional blowback because their criteria doesn't always match the intuitive sense of the word "organic" that has built up in the public conscience over the past couple of decades, particularly with respect to the list of allowed pesticides and other chemicals. You can read the regulations here if you want.