Agreed. This is how I look at it though. If Safeway (Vons, Albertsons) can stay in business despite charging more than double on the same shit we sell at Target, then Target isn't going anywhere.
They rely on their name brand and locations. They also spend significantly less on payroll then we do. At most grocery stores there are stockers and cashier's. They don't have sales floor, lower risk stores don't have dedicated loss prevention at every store, even human resources is centralized.
Honestly it wouldn't surprise me if they attempted to buy Target.Hopefully Amazon buys Target next in order to destroy Walmart!
Honestly it wouldn't surprise me if they attempted to buy Target.
Logistically nobody can compete right now with Amazon. And that includes Walmart.
Hopefully Amazon buys Target next in order to destroy Walmart!
So basically, Visa need about a 150 billion to buy amazon?This may be a large portion of the idea, but I think there is more to the story than all this speculation.
Amazon is big, and has multiple pillars to its business. It doesn't win because of ITS products, it wins because its a marketplace for e-commerce and a provider of information technology on a global scale now. Sure, it can disrupt the other grocery stores by entering into the food market, but why? The low margin and painful grocery business is not where they want to be. They have no reason to price Whole Foods down and try and bankrupt the other grocery stores.... Logistically, Amazon also does not need to buy other companies. Amazon allows businesses to sell their goods on their site and it gets money through these transactions, it doesn't need to own any of them to make money (and Whole Foods would be the last one on my list to purchase for this reason).
I would guess that they started with Whole Foods for two reasons. First, is obviously the supply chain of organic foods (not worth 13.7B for just this though). Second, and probably the more important reason, is to gain control of a brick and mortar nationwide establishment for an experiment for Amazon Go. Amazon is currently the monopoly on all online transactions. It is a major player as a server provider, but Visa is still what we all use to pay for things we physically go out and get. There have been some mobile payment providers but nothing is taking yet. Amazon with full control of Whole Foods will be able to showcase just how easy it is to buy items without Visa, all you need is your phone with an Amazon account and you will see the way of the future. As the millenials flock to this type of shopping other retailers will do whatever it takes (to pay) to have Amazon Go as a service in their building, and that is how Amazon dominates all transactions in both online and brick and mortar transactions (just my guess).
This may be a large portion of the idea, but I think there is more to the story than all this speculation.
Amazon is big, and has multiple pillars to its business. It doesn't win because of ITS products, it wins because its a marketplace for e-commerce and a provider of information technology on a global scale now. Sure, it can disrupt the other grocery stores by entering into the food market, but why? The low margin and painful grocery business is not where they want to be. They have no reason to price Whole Foods down and try and bankrupt the other grocery stores.... Logistically, Amazon also does not need to buy other companies. Amazon allows businesses to sell their goods on their site and it gets money through these transactions, it doesn't need to own any of them to make money (and Whole Foods would be the last one on my list to purchase for this reason).
I would guess that they started with Whole Foods for two reasons. First, is obviously the supply chain of organic foods (not worth 13.7B for just this though). Second, and probably the more important reason, is to gain control of a brick and mortar nationwide establishment for an experiment for Amazon Go. Amazon is currently the monopoly on all online transactions. It is a major player as a server provider, but Visa is still what we all use to pay for things we physically go out and get. There have been some mobile payment providers but nothing is taking yet. Amazon with full control of Whole Foods will be able to showcase just how easy it is to buy items without Visa, all you need is your phone with an Amazon account and you will see the way of the future. As the millenials flock to this type of shopping other retailers will do whatever it takes (to pay) to have Amazon Go as a service in their building, and that is how Amazon dominates all transactions in both online and brick and mortar transactions (just my guess).