Wal-Mart not considering a bid for Whole Foods

With the rise of automation how many jobs will last the sands of time?

It is the logical next step for technology disruption in the grocery industry, one that can only enhance grocery retailers.

Whole Foods has 11 distribution centres specializing in perishable foods that serve its stores. Whole Foods gives them an incentive to reinvent how groceries get to your store and doorstep. The service, which is offered to the company’s subscription Prime members for a monthly fee of $14.99, is available only in about 20 US cities.

Large manufacturers with high sales and a global reach, like PepsiCo and Mondelez, will be in the best position to withstand the impact from Amazon and Whole Foods, analysts said. Its German counterpart, Lidl, just opened its initial 10 USA stores. “More importantly, it puts refrigerated distribution within 10 miles of probably 95 percent of Prime members”.

Like Amazon, Instacart’s online retail business is built on optimizing customer purchasing, relationships and recommendations by using the most innovative data science, machine learning and artificial intelligence technology.

Amazon expects to reduce headcount and change inventory to lower prices and make Whole Foods competitive with Wal-Mart Stores and other big-box retailers, according to a person with knowledge of the company’s grocery plans.

It also might make it more feasible for Amazon to get into grocery pickup options, have some stuff shipped directly from Amazon to a locker in a Whole Foods. Whole Foods registered its trademark in Australia 31 year ago.

The plea for companies to see its employees as more than just disposable labor may be far-fetched, but if massive conglomerates like Amazon lead the pack, it’s possible.

JP Morgan analyst Ken Goldman noted that Sprouts Farmers Market, which is known for its low prices on natural and organic products, could become a more likely target for acquisition.

What started as an online bookstore has turned into a sort of lifestyle, with Amazon offering nearly anything you can think of.

Just as it has experimented in the furniture industry, Amazon has been experimenting in grocery for years.

Online grocery sales are expected to increase from $71 billion this year to $177 billion in 2022, according to John Blackledge, an analyst at Cowen & Co. So we’re not cutting back.

The moment Amazon announced that is was buying Whole Foods, everyone knew the future of grocery markets had changed.

Wal-Mart spokesman Greg Hitt declined to comment on whether the company is considering a bid for Whole Foods. The emerging popularity of the so-called “click-and-collect” model, where consumers order staples and other items from an existing grocery list, and then go to the store to both collect their groceries and supplement the digital selections with whatever catches their fancy in-store, seems to be a compelling approach for grocers and consumers alike.

Kenneth Sanford, adjunct professor at Boston College, told CNBC recently that one of Amazon’s goals should be to combine the data it already collects from its online platforms, Echo and Alexa, with Whole Foods ‘ customer transaction data. Whole Foods has hundreds of stores across the US, which could give Amazon a foothold in the grocery business – and possibly food delivery.

“Look at companies in the sharing economy. People need groceries every week”, Stanley said.

“Food is very hard via e-com because the margin is much lower so the possible tie-up with Whole Foods Market is a first”.

Groceries can be a lure _ one that consumers can’t live without _ which could result in more sales of Kindle e-books and other high-margin goods that could end up on Whole Foods’ shelves. Do you prefer to shop at your local farmer’s market instead of Kroger?

For so-called “Big Food”, this news comes as yet another blow with the consumers’ desire for fresher, healthier products reshaping food retail. “That’s what drives customer traffic”. But they may not let this deal go through so easily. It’s not unusual for Amazon to report almost zero in net income in quarter after quarter as the company plows money into developing new businesses, whether it’s producing original TV shows or building artificially intelligent speakers.