Did Amazon's Waste $14 Billion Buying Whole Foods?

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Six years ago Amazon spent $14 billion to buy supermarket giant Whole Foods. At the time, many expected Amazon to massively disrupt the industry... today, it's hard to see what they've really done? So did Amazon just waste billions on Whole Foods?
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00:00 Introduction
01:03 Whole Foods
05:21 Amazon Fresh
08:39 Amazon Online

КОМЕНТАРІ: 624
@AV57
@AV57 8 місяців тому
Whole Foods used to be awesome. The employees were paid well, they gave exceptional service, they worked with great ingredients, and as a customer you could find a lot of unique items there that you couldn’t find at any other chain. The downside: it was pricey. It was a place that I could afford to go to about 6 times a year. Amazon bought them and I thought it would extend Whole Foods further and perhaps drop the price of some of their items through superior logistics. Nope. They raised prices and attacked the employees’ wages and benefits. It was like flipping a light switch. The staffs went from being happy and helpful to being jaded and annoyed.
@jeremys6631
@jeremys6631 8 місяців тому
That last part was already a thing of employees. 😂 All I wanted was peanut butter but no almond butter was better
@gregdrivesdriver5104
@gregdrivesdriver5104 8 місяців тому
True. The spark went out when Amazon got involved. They treated their customers like Amazon shoppers. Nope, you can't outsource local customer service.
@Thvndar
@Thvndar 8 місяців тому
I've noticed the the employees aren't as dedicated as they used to be, but they're definitely cheaper than they used to be also. There are a number of things that are cheaper at Whole Foods than other grocery chains.
@chicitizen
@chicitizen 8 місяців тому
I quit right before Amazon bought Whole Foods, before Amazon bought the company Whole Foods probably had one of the most comprehensive health insurance plans ever.
@biggy06605
@biggy06605 7 місяців тому
Whole Foods is so boring now. I think amazon just doesn’t know what they’re doing. Ecommerce, especially low-brow e-commerce, is different than high brow brick and mortar retail
@jalex4251
@jalex4251 8 місяців тому
I worked for them and got fired for taking my medication. I’m so happy to see they’re failing. They’re run by horrible people
@codycast
@codycast 8 місяців тому
Yeah right. That’s BS and we all know it. There is way more to that story than “they fired me for taking my medication”
@MrKim-kv2vv
@MrKim-kv2vv 8 місяців тому
By not mentioning medication type, I’m gonna guess it created a positive test. If so, could have been avoided by providing the information beforehand… 🙋🏼
@codycast
@codycast 8 місяців тому
@@gags730 ah. I didn’t think of that. I could see OP smoking weed on their lunch break and calling that “fired for taking my medicine”
@shadowninja6689
@shadowninja6689 8 місяців тому
Unless this is something involving a drug test as MrKim-kv2vv says I'd think you'd have a case for a wrongful termination lawsuit.
@theaconite1400
@theaconite1400 8 місяців тому
​@@shadowninja6689they probably do have a case but the process is so slow they might be better off just finding a different job.
@Parakeet-pk6dl
@Parakeet-pk6dl 8 місяців тому
To be honest: when I’ve got the choice between walking in something that’s Amazon owned or something that’s owned by almost any other company and there’s no real price difference, I’d choose that other option always. Some coloured walls won’t change that.
@adequatequality
@adequatequality 8 місяців тому
ok
@trinsit
@trinsit 8 місяців тому
That IS the deciding factor.
@aelavia93
@aelavia93 7 місяців тому
Area man prefers cheaper prices…. Revolutionary!
@deanayer3822
@deanayer3822 8 місяців тому
In this economy it would take zero effort to skip Whole Foods and just go to a normal grocery store. Whole Foods locations always have nearby alternatives. everything about Whole Foods is a "nice to have" and nothing about it is a "must have".
@sakenu16
@sakenu16 8 місяців тому
Wholefoods is overrated. You can find same or similar in other places for less. Only good thing about wholefoods is a place to return items back to amazon lol.
@BewareTheLilyOfTheValley
@BewareTheLilyOfTheValley 8 місяців тому
​@@sakenu16Yeah, not sure if stores shifted to keep up with Whole Foods or it's always been this way, but I have a decent selection of fruits and vegetables at Walmart and Aldi. Unless Whole Foods is bringing in exotic things not found anywhere else in the U.S., I don't need to go there for their foods (never have and never will). I'm not getting the appeal of Whole Foods, aside from a sense of elitism.
@adamseidel9780
@adamseidel9780 8 місяців тому
And such is the exact explanation for their struggling financials. People are being priced out of their intentionally premium market segment and flowing down the sector into different brands. Aldi is on the opposite side of things and is the fastest growing grocer in the country. It's as simple as that. Amazon has, at BEST, simple unfortunate timing. It's definitely worth considering if they made a business mistake because 1>transitioning into traditional retail may be arrogant for a tech company, even one with the money to hire anybody it wants while trying to innovate and 2> buying in at the premium end of the market - with a company who has intentionally cultivated being pricey as part of the brand - seems sketchy for a company whose entire reason for existing is primarily slashing costs in existing industries (eCommerce cheaper than retail, amazon eCommerce cheaper than previous eCommerce, Amazon warehousing cheaper than other warehousing, etc).
@christopher9727
@christopher9727 8 місяців тому
.. Don't follow the worldly trends follow Jesus Christ today There is no security or hope with out Jesus Christ in this world come and repent of all sins today Today is the day of salvation come to the loving savior Today repent and do not go to hell Come to Jesus Christ today Jesus Christ is only way to heaven Repent and follow him today seek his heart Jesus Christ can fill the emptiness he can fill the void Heaven and hell is real cone to the loving savior today Today is the day of salvation tomorrow might be to late come to the loving savior today John 3:16-21 16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. 17 For God sent not his Son into the world to condemn the world; but that the world through him might be saved. 18 He that believeth on him is not condemned: but he that believeth not is condemned already, because he hath not believed in the name of the only begotten Son of God. 19 And this is the condemnation, that light is come into the world, and men loved darkness rather than light, because their deeds were evil. 20 For every one that doeth evil hateth the light, neither cometh to the light, lest his deeds should be reproved. 21 But he that doeth truth cometh to the light, that his deeds may be made manifest, that they are wrought in God. Mark 1.15 15 And saying, The time is fulfilled, and the kingdom of God is at hand: repent ye, and believe the gospel. 2 Peter 3:9 The Lord is not slack concerning his promise, as some men count slackness; but is longsuffering to us-ward, not willing that any should perish, but that all should come to repentance. Hebrews 11:6 6 But without faith it is impossible to please him: for he that cometh to God must believe that he is, and that he is a rewarder of them that diligently seek him. Jesus
@gwho
@gwho 8 місяців тому
definitely overrated. at least have different stuff from other grocery stores like Trader Joe's does@@sakenu16
@willemvanriet7160
@willemvanriet7160 8 місяців тому
Companies should take note that consumers care about their reputation and will shop elsewhere if they don't like how a company is being run
@theaconite1400
@theaconite1400 8 місяців тому
I agree but often times, the competitors do the same problematic things.
@motianton
@motianton 8 місяців тому
$5 bucks for a pound of potatoes at a reputable, ethical company vs $3 at amazon. Do you really think most people would care when it hits their pockets ?
@dylanf3108
@dylanf3108 8 місяців тому
@@theaconite1400The difference is those competitors are far cheaper
@jerbear7952
@jerbear7952 6 місяців тому
Most people don't care otherwise walmart never would have grown.
@filmaker256
@filmaker256 2 місяці тому
and if they use contactless methods too
@ryltair
@ryltair 8 місяців тому
That palm reading system seems really convoluted. If I want to pay for my groceries now, I just have to hold my debit card in front of the beepy thing and I'm done.
@Ushio01
@Ushio01 8 місяців тому
Wait you pay with a debit card? why? that's literally the least safe way to do it!
@pseudoki
@pseudoki 8 місяців тому
Very much should use a credit card to at least get points, but agreed. Credit cards are just as convenient if not more so than palm scanning, AND I'm not selling my biometrics to Amazon
@tomashalusek9181
@tomashalusek9181 8 місяців тому
why?@@Ushio01
@average_rite
@average_rite 8 місяців тому
​@@Ushio01how is it least safe?
@Ushio01
@Ushio01 8 місяців тому
@@average_rite If your over charged, defrauded from a rigged scanner or lose it any money lost is gone because it's your current account and is uninsured.
@Raiment57
@Raiment57 8 місяців тому
It's been 16 years since 2017?!
@betakappa
@betakappa 8 місяців тому
It's already 2033
@gytoser801
@gytoser801 8 місяців тому
Time is flowing like it's liquid with no resistance.
@casbot71
@casbot71 8 місяців тому
Covid lockdown really messed with our sense of time.
@iamtafara
@iamtafara 8 місяців тому
I played that a couple of times i thought i was hearing my own things
@ninjaydes
@ninjaydes 8 місяців тому
Yeah. Want me to pass you a calculator?
@ellicel
@ellicel 8 місяців тому
I used to do my weekly shopping at my neighborhood Giant or Wegmans and then pop over to Whole Foods for the items I wanted that were more niche, like organic or low carb. However, now so many larger grocery stores have expanded their offerings that I don't have to go to several places anymore. There's not much that is exclusive to WF anymore.
@floxy20
@floxy20 8 місяців тому
Amazon and Whole Foods deserve each other. They should call the chain Low Margins.
@LeTrashPanda
@LeTrashPanda 8 місяців тому
Amazon made Whole Paycheck pointless. Support local farmers....
@fredricgrethel1717
@fredricgrethel1717 8 місяців тому
Amazon ruined this store. It did not let it run as an innovator and it did not take advantage of the brand to scale, albeit as a transformed entity. Instead it has just limped along. Unhappy employees, unhappy customers. Very unfortunate. Total fail.
@fluffylee41
@fluffylee41 8 місяців тому
Since Amazon bought Whole Foods, I have renamed it 1/2 Foods. Their choice of organic foods dropped to the level of any ordinary grocery store, so I haven’t been their in years.
@milkcookiesandme
@milkcookiesandme 8 місяців тому
That's good haha. I'm going to borrow that one
@Lemuel928
@Lemuel928 8 місяців тому
Half Foods?
@liannebedard5521
@liannebedard5521 8 місяців тому
Whole Foods is the biggest of Bezos’ blunders…well, right behind his barbaric benefits packages. Dull stores, limited selection…and so on. Half Foods is the perfect handle…
@electrodynamicorb6548
@electrodynamicorb6548 7 місяців тому
Organic is such a waste of money. Nothing in this world is organic.
@liannebedard5521
@liannebedard5521 7 місяців тому
Whole Foods was a gem…I drove well out of my area to visit their phenomenal store with the best selection in the city. My Safeway…not even an upscale one…can beat the embarrassing WF store. Definitely a big Bezos blunder…
@SloMoMonday
@SloMoMonday 8 місяців тому
It's a strange time when the corner store is easier, faster, more social and cheaper than the biggest company in the world.
@Thingsyourollup
@Thingsyourollup 7 місяців тому
Why is that strange? Its the way it SHOULD be. No one benefits when large corporations control entire segments of the economy, except for the CEO and shareholders.
@ElJosher
@ElJosher 7 місяців тому
@@Thingsyourollupindeed
@nevm7469
@nevm7469 8 місяців тому
the biggest issue with whole foods lately is that they fell into the same trap that almost all premium and high end brands do whenever they attempt to expand into the mass market, they lose their exclusive luster. it’s what’s hobbled many luxury brands in the past (calvin klein, tommy hilfiger, marc jacobs, michael kors, coach, kate spade, donna karan, etc) and what killed clubhouse after they went from invite only to general admission. exclusive brands lose their luster and appeal whenever they pivot towards mass attainability. counterintuitively, the best thing whole foods could do for itself would be to close down some stores, retaining only the ones in the most exclusive zip codes, and raise prices (not lower them). they’d be better off making themselves even more exclusive than trying to go the economically inclusive route. they’re not a mass market grocer to begin with, they’re a speciality premium grocer. they should lean back into that.
@InventorZahran
@InventorZahran 8 місяців тому
Wait- Calvin Klein and Tommy Hilfiger were once considered 'luxury' brands? I've only ever seen them as basic, cheap, and common.
@void________
@void________ 8 місяців тому
​@@InventorZahranYeah, they definitely were luxury at one point.
@void________
@void________ 8 місяців тому
Then they would be Erehwon.
@racool911
@racool911 8 місяців тому
@@void________That's absolutely crazy to me lmao
@douglaswynn9668
@douglaswynn9668 8 місяців тому
I would have to agree, but they would need to hire some real chefs for their prepared foods (hot and salad bars, etc…)
@mharp6166
@mharp6166 8 місяців тому
Yes, they ruined it. I remember working at whole foods before being bought out. It's a night and day thing. I remember our store made sure to be a part of the community, employees were valued and our benefits package was nice, even the hours weren't crazy.... Then amazon came and turned it into any ol store, took out benefits, hired people only interested in money and not community. That same store flips employees every month now, when people used to work at whole foods for a career just fine.
@chuckwood3426
@chuckwood3426 8 місяців тому
At $14 billion for 500 stores. That comes out to $28 million per store. Which I'm not even sure if they own or rent. That seems expensive.
@douglaswynn9668
@douglaswynn9668 8 місяців тому
They build and own most of their stores
@douglaswynn9668
@douglaswynn9668 8 місяців тому
The day the deal was announced, Amazon’s stock shot up more than what they paid for Whole Foods. Bezos not only completely bought up Whole Foods, but made a profit by doing so.
@shadowninja6689
@shadowninja6689 8 місяців тому
@@douglaswynn9668 That honestly still sounds expensive to me offhand. I don't know the details about how much it costs to setup a new grocery store, but I'd think that grocery stores probably isn't a business with a very big moat.
@OlJackBurton
@OlJackBurton 8 місяців тому
probably not just the stores, but also the former stock/market cap too...
@davidpachecogarcia
@davidpachecogarcia 8 місяців тому
Amazons self service food counters are convenient but expensive. Their grocery selection leaves much to be desired. I don’t really know who is curating it. Their designs in nyc are pretty cool but theres a general “blandness” to it. Their Amazon app is so bloated!!!
@MilwaukeeWoman
@MilwaukeeWoman 8 місяців тому
The Amazon app is getting as bloated as iTunes before I gave up on everything Apple.
@davidpachecogarcia
@davidpachecogarcia 8 місяців тому
@@MilwaukeeWoman even the Apple Music app has me questioning where I am in the app. The thing I hate the most is getting to the shuffle and replay menu. Why do I have to go to a button and then make my selection in a sub menu! ☠️
@Iquey
@Iquey 8 місяців тому
Curating? I'm not sure either. Seems like it's all data and AI driven with maybe a bit of human review
@im1066
@im1066 8 місяців тому
I've actually shopped at one of these stories. They suck from an in-store experience. It's hard to find stuff or figure out how to even get in. Terrible human factors design.
@dianapennepacker6854
@dianapennepacker6854 8 місяців тому
Hard to get in... That sounds like a you issue mate. You look for the entrance and not the exit. Still suck though. Their selection sucks. So many stores try peddalijg their stupid brand, and store brand stuff is hit or miss. You really have to buy the specific product to see if it is good. Now I wouldn't mind this if it didn't take up 40% of the goods. Like you can't carry different items? Do you really need 200 boxes of "365" original here at any given time? Can't give different flavors even that other brands sell or something? So I guess I'm complaining about selection. They aren't cheap for Amazon. Amazon needs to make a high end store which what Whole Foods was. Then make a Walmart competitor or something. They are basically as expensive as a state wide grocery market.
@filmaker256
@filmaker256 2 місяці тому
And they want you to use your palm to pay ... nope!
@phoenix5054
@phoenix5054 8 місяців тому
I think Kroger's market cap was about $13 billion when they acquired Whole Foods at $14 billion.
@Ushio01
@Ushio01 8 місяців тому
You don't pay market cap though there is always 20+% extra as if you just started buying shares on the open market the value would skyrocket so you make a deal with the largest shareholders to not have to let the market push the price up too much.
@phoenix5054
@phoenix5054 8 місяців тому
@@Ushio01 Sure. So shareholders might have allowed Kroger to be sold for $15-16 billion. It's still a better value than Whole Foods, I should say.
@badluck5647
@badluck5647 8 місяців тому
To be fair, Whole Foods was still opening stores, and it had better margins on most products. Meanwhile, unions are killing Kroger, who keeps closing stores as non-union competitors offer better customer service and keep their shelves stocked.
@fanban2926
@fanban2926 8 місяців тому
@@phoenix5054But you must consider the debt load. EV is often higher than MC and is the actual price paid.
@fanban2926
@fanban2926 8 місяців тому
@@weird-guyRevenue without profit is useless
@ducknorris233
@ducknorris233 8 місяців тому
Maybe he meant 16 years since Amazon first started the grocery business not 16 years since the 2016 purchase of WholeFoods.
@atticus._
@atticus._ 8 місяців тому
Think it was supposed to be 6 not 16
@sandrodesouza377
@sandrodesouza377 8 місяців тому
We have 3 Whole Foods in the city I live in but I still prefer Walmart or Aldi. Cheaper bigger selection. The tech in Amazon stores are cool but comes off as gimmicky.
@filmaker256
@filmaker256 2 місяці тому
And they want you to use your palm to pay .. nope!
@SRFriso94
@SRFriso94 8 місяців тому
When people struggle to make ends meet, the first thing they cut is small luxuries and conveniences that come at a premium, like home-delivered groceries. That's also why those dark stores are stuggling in Europe, apart from legislation.
@dianapennepacker6854
@dianapennepacker6854 8 місяців тому
Issue with grocery stores delivery is they charge by the fucking item some of them. Cheaper to literally get an uber and get the items myself with one other person.
@casbot71
@casbot71 8 місяців тому
It's still cheaper than buying Twitter.....
@jenniferlucas685
@jenniferlucas685 8 місяців тому
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
@JustKollins-fc7cf
@JustKollins-fc7cf 8 місяців тому
Making touch with financial advisors like Maria Williams who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times.
@amandamaria-mo1hc
@amandamaria-mo1hc 8 місяців тому
She trades for me too. My first investment with Maria Williams gave me profit over $25,700 and ever since then I trade with her and it has been a good turn up
@alexandranewton-wj1th
@alexandranewton-wj1th 8 місяців тому
Hello Do you know how much is ok for a start let me know if I can do this... Can I start with $5000?
@brianstupar7433
@brianstupar7433 8 місяців тому
I used to shop at the original WF store in Austin, TX. back in the mid 1980s. I thought it was the coolest store I had ever seen in my life. In those early years, WF served a niche market of health aficionados , hippies, and students. They were widely known to have a great working environment and it was near impossible to get a job there because the staff rarely quit. It was a coveted job. I eventually worked at one of their other Austin locations in the early 90s and the original Washington DC location and loved it, for a while. I eventually moved overseas and when I went back to a WF in 2014 after not seeing one for over ten years, I was shocked at the decline. The layout and design was confusing and the staff was generally not well trained and certainly not passionate about WF's original ideals. The vitamin/herb/supplement section seemed particularly bad and the staff member I talked to knew almost nothing about the products. I can only imagine what it's like now.
@chachacamel
@chachacamel 8 місяців тому
Having been to many WF stores in different states, the quality of the store can vary A LOT between locations. Idk how it used to be, but only their relatively new locations that were built in new buildings or plazas are good locations. Any store that had to be adapted to an existing location leaves a lot to be desired
@Hotshotgels
@Hotshotgels 8 місяців тому
Yes I agree I used to know the names of my cashiers & staff miss the banter, shopped at the original WF in Studio city Cali
@chidianuforo3670
@chidianuforo3670 8 місяців тому
I only go to Whole Foods to return packages to Amazon
@HereWeAre__01
@HereWeAre__01 Місяць тому
LMFAO 🤣
@mw4507
@mw4507 8 місяців тому
I deliver for Whole Foods. The past few months, orders have dropped off the map. Recently, they extended the delivery area. So, I am driving like 40 miles away for 3 bags of groceries. I am thinking about quitting at this rate as I use my own car and gas.
@robinly
@robinly 8 місяців тому
Yeah man. Find another job. I'd rather work at a gas station.
@mw4507
@mw4507 8 місяців тому
@@robinly I do uber lyft, doordash etc. so if I drop whole foods it won't be a huge loss.
@soundwave3353
@soundwave3353 8 місяців тому
Overpriced food, you can buy the same thing at a regular grocery store for cheaper
@sakenu16
@sakenu16 8 місяців тому
And Amazon also has Amazon Fresh which is confusing. Just call all of them Amazon fresh and do one thing right before trying to do two.
@gregdrivesdriver5104
@gregdrivesdriver5104 8 місяців тому
No reason to shop at Whole Foods. They once had cake made in their stores. When they decided to ship in frozen cakes and thaw them in the store for $35, I said, I'll pass.
@feliciafelicia6965
@feliciafelicia6965 8 місяців тому
I still shop at whole foods. A lot of the really small niche stuff is gone. Only large local brands. So no more finding new products to love. At least not in Colorado. 365 brand products are comparable pricing to the regular grocery store now since inflation. But everything else skyrocket in price, above grocery store pricing.
@void________
@void________ 8 місяців тому
Yes, the online shopping was totally frustrating. I gave up. 3 separate checkouts for 3items with 3 wildy different prices was ridiculous.
@samuhlm2
@samuhlm2 8 місяців тому
I go to WF for a few specific things I can’t get elsewhere that I like, and occasionally will get some stuff for my doggo if I’m out but can get the same brand most places (freshpet). It really used to be a lot better and who knows maybe they’ll dump it back to the prior owners who will push to make it unique again
@joshuawilson8804
@joshuawilson8804 8 місяців тому
I was taking an innovation class in college when Amazon acquired Whole Foods and that they were using just in time inventory where they would ship items to the store before the ran out. I was in the minority saying you can't algorithm people's buying habits when it comes to food. A computer scientist insisted they would figure out the 'algorithm' but couldn't articulate how such an algorithm would even work, as the compared model was car manufacturing which was a specific product based upon parts and production speed. Rather than a large variety of inventories from different companies, all competing with each other. Not to mention inconsistency of individual eating habits.
@mkvenner2
@mkvenner2 7 місяців тому
You can algorithm people’s buy habits when comes to food, but only in a broad macro sense for basic food products and the industry has been doing this for decades before Amazon was founded.
@OvertimeSessionHD
@OvertimeSessionHD 7 місяців тому
@@mkvenner2yup spot on, pattern recognition can get it to a close estimate of buying habits.
@LudvigIndestrucable
@LudvigIndestrucable 8 місяців тому
How American, "we seem like a bland corporate vacuum" "quick, sell doughnuts"
@Fellowtellurian
@Fellowtellurian 8 місяців тому
People who shop at Whole Foods do not want Krispie Creme donuts and coffee, they want a craft espresso from a mom and pop. Lol. They really don't understand their core demographic. We would eat less if it meant being able to have daily joy. We are over worked and underpaid and just want to relax and experience city life. That ain't Krispie Cremes.
@aksez2u
@aksez2u 8 місяців тому
According to video, the Krispy Cream donuts idea is associated with the Amazon Fresh stores, which is possibly a different demographic than the Whole Foods . I'm not sure whether it is a big selling point for either, though.
@liannebedard5521
@liannebedard5521 8 місяців тому
I ate a Krispy Kreme..once. What a vile experience…
@aksez2u
@aksez2u 8 місяців тому
@@liannebedard5521 Really? I didn't think they were any better than a regular donut, but "vile"?
@liannebedard5521
@liannebedard5521 8 місяців тому
@@aksez2u So much sugar my tongue burned. Absolutely no excuse for such a poisonous product. I am an accomplished home donut maker, and have eaten local donuts in at least six states. Dunkin Donuts is so far ahead of this poisonous that the distance is not measurable…
@aksez2u
@aksez2u 8 місяців тому
@@liannebedard5521 Interesting. I guess when I'm eating a donut (which is a rare treat), I expect it to be a sugar bomb 😁.
@pasl2784
@pasl2784 8 місяців тому
I think the fundamental problem is that Amazon has always run with the Walmart philosophy of sell products for the cheapest possible price to the most amount of people. However, Whole Foods is basically the opposite of that with their much higher prices and limited appeal to people looking for healthy/organic. It was just a strange purchase for Amazon. I guess they figured it would be easier than just building a new grocery store chain from scratch, but looking at it now, I think they may have been better off doing that. They could have built mini warehouses aka Walmart or even bulk like Costco, and used it for distribution centers and used their massive network and connections to slowly bring down prices as they grow. One day they could have even reached a point where they could compete with Walmart on price. However, they decided to take a strange route and we will see how it plays out for them.
@davidknightx
@davidknightx 8 місяців тому
THIS! When I heard about the acquisition, I was dumbfounded. Just...why?! All Amazon had to do was build a bunch of warehouses all over that customers could NOT enter. Then redo a part of their website for food, have some slick curbside pickup solution (or better yet, drive-thru), pay the employees well (yeah, I know...Amazon doesn't do that), and BAM. You got a successful business model.
@pasl2784
@pasl2784 8 місяців тому
@davidknightx Yeah I agree that they could have done this a lot better. I mean Jeff Bezos is clearly a smart man and there are surely some reasons behind the scenes that they did this deal. But from the outside, it clearly seems like a strange decision.
@Alfredosolotravels
@Alfredosolotravels 8 місяців тому
I work at Whole Foods and it’s all true. I still like it though they pay more than most grocery stores
@MrTheUtubewatcher
@MrTheUtubewatcher 8 місяців тому
I disagree with this as someone who uses a fresh store, I can tell you the one near me is always packed, and I prefere it to walmart .
@joshuachapman247
@joshuachapman247 8 місяців тому
Great episode, thanks for the deep dive on this.
@michaelnurse9089
@michaelnurse9089 8 місяців тому
Its a pricing problem. Stores with half the number of employees should be cheaper, not 33% more expensive.
@kilimanjaro3517
@kilimanjaro3517 8 місяців тому
Before Amazon acquired it the Whole Foods at the Union Square in NY used to be such a pleasant experience. There was so much variety and the place was buzzing with activity. After work i would walk 30 blocks to the store, no matter how tired i was. Now its not the same place any more. They tried to redesign the store and its such a fiasco. I guess no one believes in “if it ain’t broke don’t fix it”. Same scenario with Bed, Bath & Beyond on 6th Ave. near 18th street, having a large real estate footprint and minimal merchandise didn’t do them any good.
@megeek727
@megeek727 8 місяців тому
I see some past employees of Whole Foods complaining about the change in culture after Amazon purchased the chain. When the culture of a company changes it can be a jarring experience for the employees. From the customer's view, after the takeover, the prices decreased slightly for Prime members and the availability of products greatly improved. We tend to forget before Amazon purchased Whole Foods it was hit-or-miss as to whether your favorite product would be instock. It wasn't uncommon for items to be out of stock for weeks. Amazon has greatly improved their supply chain. Walmart services a totally different demographic than Whole Foods. I would hope Whole Foods would never choose to compete with Walmart. Whole Foods is known for quality at an accessible price. Walmart is known for its rock-bottom price. The Whole Foods experience is about building brand loyalty. Regular Whole Foods shoppers tend to be Prime members with an Amazon credit card. That gives them an automatic cashback plus their Prime member discount on sale items. It is arguably the best cashback offer in the country.
@whitecanegamer
@whitecanegamer 8 місяців тому
If Amazon want to identify which changes actually have an impact, I agree with their decision to make small, incremental changes. If you change too much in one go, it will be hard for even Amazon to put their finger on what makes a difference. What I don't understand is why they have the Amazon Fresh and Wholefoods brands, surely it would make more sense to have these under one umbrella. Love the video and some of those text transitions are pretty cool! Keep up the great work.
@gamewithadam7235
@gamewithadam7235 8 місяців тому
Tesco tried to break into the American market with "Fresh and Easy" for 5 years they were losing money but they were getting close to even and were expected on their 6th year to start to profit but for some reason they dropped out of the USA in 2013 when they were about to start making respectable profits. Another interesting case no doubt. I personally think Tesco could easily become mainstream in Europe and USA.
@patlynch6517
@patlynch6517 8 місяців тому
I shopped at a fresh n easy store in Phoenix AZ. The manager said it was the highest volume store in the state. They were convenient, had affordable single serving dinners and were nearby- so, they closed and pulled out of the USA??
@raylopez99
@raylopez99 8 місяців тому
LOL. Nothing the UK does is ever cheap; UK and cheap don't go together. Tesco is IMO like the "7-11" or "Wawa" store in that it sells stuff at a premium in small stores that are conveniently located. I've only used them overseas, not in the UK.
@gamewithadam7235
@gamewithadam7235 8 місяців тому
@@patlynch6517 Apparently so.
@gamewithadam7235
@gamewithadam7235 8 місяців тому
@@raylopez99 Tesco is extremely cheap. You can get huge discounts on things at certain times and you can order online to get cheap stuff without having to think too much about it. You can make your shopping go far by just being a bit tactical with it. And quality wise it's much better than the USA I believe.
@texasoilfields
@texasoilfields 7 місяців тому
Isn’t waitrose the better one in the UK? I could be way off but I thought I remember that
@otaconpunished
@otaconpunished 8 місяців тому
Ordering produce/fruit/meat stinks online, they always send their worst unsellable product.
@a.harrington1634
@a.harrington1634 7 місяців тому
As someone who had a mum that was excited to try amazon fresh via prime, the multiple baskets thing threw her off. She's not a tech dullard, but she's in her 60s and retired; her schedule is always changing, and the trade off in price wasn't worth it with the added inconvenience. For some of the things she wants, its faster and easier to order online and have it shipped to a store for pick up (places like Walmart or Target). She can get them without having to be home for a delivery, and her soap/books/throw pillows can be loaded up at the same time as the milk and produce. Even shelf stable things from amazon fresh (like Mrs Meyers soap) came in a separate delivery because they were from fresh instead of regular amazon.
@texasoilfields
@texasoilfields 7 місяців тому
Items in Whole Foods that I’ve not seen in other stores: 1) taleggio forever cheese 2) actual fresh squeezed orange juice (the machine is in there, you do it yourself) 3) klaermelk Dutch cheese 4) creminelli salami I’m not saying these aren’t available elsewhere, just that I haven’t seen them elsewhere. Those 4 products alone ensure I shop at WF; everything else is just a bonus
@sousafamilygarden
@sousafamilygarden 8 місяців тому
No they just need to reduce grocery prices that's all
@gavinyu21
@gavinyu21 8 місяців тому
At the end of the day, consumers want high quality, affordable groceries with great variety. Companies that don't focus on these and wonder why they are not popular should have someone who actually shop their own groceries to make the strategy.
@Snapdragon0112
@Snapdragon0112 8 місяців тому
I think soon people will realize that the expand or die strategy is a bit like the square cube law. The bigger you become, the more and more finances you need to sustain yourself. To the point where it is impossible for you to stay afloat.
@RatchetSly
@RatchetSly 8 місяців тому
I've been in one of these stores, and it gave me the feeling that it wasn't designed for humans to be inside, like it was relucantly, begrudgingly allowing customers to enter. It felt even more hostile than NoFrills, a chain whose stores are painted in warning-tape yellow.
@aksez2u
@aksez2u 8 місяців тому
Interesting observation. I only went into the prototype Amazon Go in Seattle a couple of times, but this description rings true. Not sure why it feels that way!
@ThatCoolKidYouKnow
@ThatCoolKidYouKnow 7 місяців тому
I don't think any company could take my business away from Kroger. It's the perfect grocery store. I know the workers, and I love their in-house products.
@stephenspackman5573
@stephenspackman5573 8 місяців тому
You know that Cupertino (where Apple is headquartered) _is_ in Northern California, right? That one is about 8 miles from the Los Altos one. Our local Wholefoods (also nearby to the stores mentioned) is nowhere near as nice or as useful as it was before the acquisition. We still haven't found a single ideal alternative, but my goodness we're looking.
@VelocityZap
@VelocityZap 8 місяців тому
Where I live here in Texas. I use HEB Delivery for my Groceries. They utilize favor to do the shipping. It only costs like $10 in total, granted the groceries are slightly increased but really reliable- especially if you do not have a car.
@jonahfalcon1970
@jonahfalcon1970 8 місяців тому
Problem is, supermarkets are a local chain thing. I seldom buy anything from Whole Foods except to get a pizza slice or buffet for my board game group. It isn't the Walmarts. It's the local supermarket. I live in NYC and I shop at Ideal (local supermarket) and Western Beef (27 in the tri-state). Then there's Jack's. I'd guess I prefer CVS/Target and local bodegas, too.
@iamme4494
@iamme4494 8 місяців тому
TBH I fear Jeff Bezos
@blueboy3990
@blueboy3990 8 місяців тому
Daddy bezos isn't gonna harm you
@mrsylvester5874
@mrsylvester5874 8 місяців тому
He's moral
@mr-andrew
@mr-andrew 8 місяців тому
No billionaire is a good person.
@risingphoenix1088
@risingphoenix1088 8 місяців тому
He's not worth your fear. There are bigger fish than him.
@jakubzneba1965
@jakubzneba1965 8 місяців тому
@@mr-andrewhow so?
@snow-uq4gx
@snow-uq4gx 8 місяців тому
Chicken thighs went from 449 to 729 this week alone 🤯🤯🤯 like wtf Jeff
@nate2435
@nate2435 7 місяців тому
It's strange. Here in Massachusetts they've built out 5 Amazon Fresh stores that have been empty for a year plus
@sixonedude
@sixonedude 7 місяців тому
Before Amazon took over, Whole Foods was going to expand into low-cost groceries with its 365 brand. Amazon canceled the expansion plans, and in hindsight it was a missed opportunity
@monferno1
@monferno1 8 місяців тому
I will say, Whole Foods prices have gone down by allot, and I’m happy about it. The prices didn’t actually go down at all really, they just didn’t raise them with inflation like other companies did
@douglastiffany5945
@douglastiffany5945 8 місяців тому
I have been in Whole Foods one time and have NO plans to ever go back.
@unessential
@unessential 8 місяців тому
I think this video needed to start with a bit of context. Whole Foods is unknown in the UK outside London and I don't think most people in the UK realise Whole Foods operates here at all. I also feel like a lot of statements in this wouldve benefited from being appended by 'in the US/North America' or 'in the UK/Europe'.
@SpenserLi
@SpenserLi 8 місяців тому
Only people don’t regularly shop for groceries go to Whole Foods. Identical items in whole foods cost more than double compare to other grocers. Last time I was there some dude was ooh and ahhh on a head of overpriced Italian broccoli, having never seen it before. That’s the demographic that shops in Whole Foods 🤷‍♂️
@RadBunny2269
@RadBunny2269 7 місяців тому
That biometric payment idea is actually the ultimate future as much as folks are making fun of it here. The ultimate payment form you’d an end er lose or forget. It’s actually smart & that will eventually replace cards & all.
@Drahko12
@Drahko12 8 місяців тому
I went to Whole Foods in 2016 and was impressed with the variety of food options that you don’t get in other stores. is too far from where I live but it was nice going there, very pricey for me but did bought a few things. Forward to 2022 and I was by confused when I went back to the local Whole Foods from years ago. Is nothing like the old store and most of what was being sold is crappy naturopathic medicine. 😂 like wtf, how you expect to retain the previous customer base with this and then attract new people with this. It doesn’t make sense
@JoelReid
@JoelReid 8 місяців тому
Australia has a Grocery duopoly (Woolworths and Coles), yet even they do not do grocery delivery in low population centres despite their large market shares.
@willissudweeks1050
@willissudweeks1050 8 місяців тому
I like shopping at nice stores rather than wal mart but prices at Whole Foods are insulting. They charge like 30% more for no reason.
@0fficialdregs
@0fficialdregs 8 місяців тому
the wf store i work at, has been under remodeling for almost a month because amazon is too cheap to pay for a remodeling team that could get the job done in a shorter time than the cheaper options. took them an entire month to finish the only 2 bathrooms in the building, sending customers to other stores to use their bathrooms
@JonySmith-bb4gx
@JonySmith-bb4gx 3 місяці тому
😂😂😂😂 weren't u crying about china
@0fficialdregs
@0fficialdregs 3 місяці тому
@@JonySmith-bb4gx I don't cry about anything other than my family passing. further your emojis are as shitty as your lame reasoning of commenting.
@mariokarter13
@mariokarter13 8 місяців тому
It's worth noting the key difference between groceries and everything else Amazon sells: Perishability. You can store a knick-knack in a warehouse for months at a time and ship it at at the customer's convenience. How do you mail a carton of eggs? Or a pint of ice cream?
@ang2733
@ang2733 8 місяців тому
I used to love shopping at Whole Foods. Everyday I wld stop in after work. Now I hardly go in once a month. The quality is lost, the ambience is gone. A lot of the brands I loved are no longer available. Trader Joes is now my go to market.The prepared foods are horrible now and maintenance of the salad bar is a NIGHTMARE. I rarely buy from WH anymore. It used to be a joy shopping there. A quality gourmet shopping experience which Bezos has turned into a overly florescent-lit utilitarian task. Even the interior environment pushes one to get out fast, dont linger or browse. PLS NO krispy cremes, that's tacky. TIME TO DO A RESET. Need unique foods no matter the cost. What BEZOS bought was superior to what he turned it into it. He destroyed Whole Foods. My monthly 70% food purchase at WF shriveled down to maybe 20% while Trader Joes and gourmet markets increased to 80%. Please someone re-acquire this brand back to its original what used to be a fun gourmet experience.
@fightsports66
@fightsports66 8 місяців тому
So what was founded as a healthy food chain is now going to have Krispy Kreme kiosks as you enter.
@kevinr6871
@kevinr6871 8 місяців тому
Amazon being a cost-leader across their segments should have found a different grocery company to buy. They probably chose WF due to their name recognition. Overall, their brands don't really mix well together.
@Rose.Of.Hizaki
@Rose.Of.Hizaki 8 місяців тому
I mean, Amazon is doing a good job of killing prime anyway with their recent change to deliveries when it comes to small one off items. Imagine paying them £95 a year for prime but being charged regular shipping prices if you just want one small item. Unless you use any of their streaming services regularly the Prime service is no longer fit for purpose. I mean sure you get _'prime day'_ for prime customers but 99% of the time prices have been manipulated to make it look like youre getting a better deal than originally stated. £95 is not chump change either. cancel your prime and put that money towards something else and only consider amazon when you need/want something that cant be gotten elsewhere.
@exodous02
@exodous02 8 місяців тому
I have to go to mine to return my packages and although I don't buy anything there it is always really busy. It is just way too expensive there.
@aksez2u
@aksez2u 8 місяців тому
Drats. There's a new Amazon Fresh location very close to us that's been under construction for YEARS. I've been very excited for it to open, not so much because it's an Amazon Fresh, but just to have groceries in a convenient, walkable location. Now I find out that its opening is on hold and this video explains why. Hopefully it will open eventually. SO MUCH money invested already.
@tacomuncher211
@tacomuncher211 7 місяців тому
If they cant make groceries "affordable" key word "affordable" it will ALWAYS be a failure
@iamstill
@iamstill 8 місяців тому
*Idea* they should create tech and change "Fresh" to allow customer to order directly from local farmers. That would put small farmers back in business. 💡
@TrvisXXIII
@TrvisXXIII 7 місяців тому
That might be the first sponsored ad in a video I’ve ever considered signing up to on UKposts, wow!
@jonevansauthor
@jonevansauthor 8 місяців тому
I've used it in the UK but it's not cheaper than ordering through a supermarket, and many of the groceries available are at higher prices than I'd buy them from a supermarket. Since the minimum order is pretty high, and even dry goods won't ship with other Amazon Prime orders (you aren't getting ketchup with a USB power bank in the same box) it's of limited use and not cost effective. If I could bulk order packaged and tinned goods and drinks at a lower price than I could from existing food delivery it'd be helpful. As it is, it's not the part of my Prime that I find useful.
@liannebedard5521
@liannebedard5521 8 місяців тому
It was my favorite food store…roomy, colorful…and filled with wonderful produce and especially deli treats and a great meat and fish selection.. A great private label selection too. I made a fun outing of it. Now it is an overpriced, unfriendly unpleasant embarrassment…
@EricAbbottTri
@EricAbbottTri 8 місяців тому
I didn't even know Amazon Fresh was a thing.
@patrickp8315
@patrickp8315 8 місяців тому
Amazon does NOT need to own every business.
@nelzelpher7158
@nelzelpher7158 8 місяців тому
Amazon makes video games too lol. It’s called new world I think.
@Dewi-H
@Dewi-H 8 місяців тому
@@nelzelpher7158 They have TRIED to release a bunch of games but most of them flopped or were dropped before release.
@skunkyboy69
@skunkyboy69 8 місяців тому
Videos every day please we need more tldr business!!!!
@Bgeorge430
@Bgeorge430 8 місяців тому
Whole Foods' service standard has dropped dramatically. Last year, when I was in the meat department, a meat worker started spraying glass cleaner all over the inside of the steak case to clean it. The steaks were not covered, so it got glass cleaner all over everything. Customers, including me, said something, and only one employee mumbled something about how he should stop spraying. No meat was removed, and then they went on with business as usual. All that 2-hexoxyethanol, isopropanolamine, sodium dodecylbenzene sulfonate, lauramine oxide, and ammonium hydroxide were all over everyone's "organic" meat that week, and Whole Foods didn't give a s#%#. Also, as a regular customer, I notice that about half the employees out on the floor have a weird attitude and will not converse in any way about the products. It might just be stupidity, but I think it's more just poor service training.
@GoldenSkeeter
@GoldenSkeeter 8 місяців тому
I pass on the Whole Paycheck aka Whole Foods experience.
@monkeymanbob
@monkeymanbob 8 місяців тому
I do like the Amazon Fresh store near my work place, but often the staff out number the customers. Decent lunch time meal deal. Staples are pretty cheap. But it's not in a really, really residential area. If there was one in the town I lived, with a decent and varied inventory I'd use it a lot. Living outside of a major city means that spices, herbs and certain ingredients are a no-no unless you go to a speciality store in another town or city - the time when you know a jar of paprika is £1.90 in Tesco but £1 for 500g bag in the Nepalese shop 20 miles away.
@chrispnw2547
@chrispnw2547 8 місяців тому
In America there is one additional thing Walmart offers that you rarely find elsewhere. Sketchy and violent customers. Ask the local law enforcement for proof.
@bessycorrales6405
@bessycorrales6405 8 місяців тому
I immediately stopped shopping at Whole Foods when it was bought out by Amazon. No way, no how am I supporting Amazon, if I can help it.
@K1Kamikaze
@K1Kamikaze 8 місяців тому
Cupertino is in Northern California, they were saying how much stores in the same general region can very
@elcastorgrande
@elcastorgrande 8 місяців тому
Amazon is utterly revolting.
@jbucata
@jbucata 8 місяців тому
I thought there was supposed to be a mass-scale experiment with "just walk out" grocery stores in San Francisco...
@infomercialwars
@infomercialwars 8 місяців тому
The issue with the way they have the palm scanning is that if you don't have it set up you have to hold up the line while you go through the set up process I tried it and it took too long it's quicker to use my card
@Dpmt
@Dpmt 8 місяців тому
I remember the fear being that AWS was so profitable that Amazon wouldn’t need to make any money from grocery at all and enable them to expand and push out their competitors. It’s a good thing that this hasn’t happened.
@SonyaandSidney
@SonyaandSidney 8 місяців тому
Delivery is ridiculous. It's not included in Prime, and costs $10.
@brianw3663
@brianw3663 8 місяців тому
It's whole paycheck. That is why I don't shop there.
@common12
@common12 8 місяців тому
The stores are not well-stocked today, still high priced and they have cut down on prepared foods (which I looked forward to). Def have allocated more space to Amazon returns and self service. It’s not the same place and the brand is diluted. I go to Trader Joe’s and save 20%.
@gavinnorthants
@gavinnorthants 8 місяців тому
I found the same in Scotland, tried to order some groceries from Amazon, but prices seem high and you need a Prime membership or otherwise, you've got to pay for shipping. As well not everything is available and you get sent to Morrisons grocery deliveries, so now there is two deliveries. Secondly, the stuff I wanted to bulk buy and keep was more expensive than Tesco and Aldi even compared to smaller packs and weight per 100g. The only good thing was Amazon sold some speciality coffee, so if you want some specialty items at a decent price Amazon is the place to go. But will not beat supermarkets for everyday essentials in one shop or delivery.
@mechanix1228
@mechanix1228 8 місяців тому
If your even half way decent at cooking Smart & Final, Ralphs, Food 4 less or even Vons have what you need.
@Senpaischick
@Senpaischick 8 місяців тому
This makes me feel like it’s not worth having Amazon prime anymore. In Seattle when I was home, it was so nice having 2hr groceries delivered and having prime waved my delivery fee. Amazon Fresh was convenient as I could walk in walk out and go about my day. But if you’re cutting prices allowing non-prime members to shop in these spaces then lower the prime membership back to $99??!!
@33Jenesis
@33Jenesis 8 місяців тому
I can’t afford whole food’s prices but I do shop at Amazon fresh weekly. It is slightly more expensive than Aldi’s but better in quality. After Amazon Fresh opened in my town I stopped shopping at Aldi’s.
@austinn.4389
@austinn.4389 7 місяців тому
The issue with Amazon go / fresh is that it's not even cheaper. Even though they don't have nearly as many employees, and employees usually are the biggest cost to a business. So there is no extra savings, and on top of that it's kind of creepy, and uncomfortable. And the soulless part is because there are no employees to interact with and it just feels dead inside
@chirich572
@chirich572 8 місяців тому
I stopped shopping grocery online from Amazon after they first stopped free delivery for Whole Foods then for Amazon Fresh for Prime members. They're not utilizing the Prime membership pool to lock in customers. Bait and switch doesn't work for grocery shopping; consumers can easily switch allegiance after the free shipping stops.
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