[TE Summary] Jun 16th '17 Whole wallet - An industry shudders as Amazon buys Whole Foods for $13.7bn
http://www.economist.com/news/business/21723680-investors-hammered-shares-other-grocers-wake-deal-industry-shudders
Whole wallet
An industry shudders as Amazon buys Whole Foods for $13.7bn
Investors hammered the shares of other grocers in the wake of the deal
June 16th, 2017, New York
Summary
1. On June 16th, Amazon acquired Whole Foods for $13.7bn, an organic grocer, now controlling 1.4%, slow relative to 32% of its Chinese rival, Alibaba.
2. Whole Foods are not juggernaut(giant) but has about 450 stores in the US, the UK, and Canada. American shoppers have many other options to avoid its pricey products too.
3. This deal is ground-breaking in terms of the scale, 10 times larger than any the e-commerce has bought, along with its experiment of physical retail such as bookstores and a new style of grocer, Amazon Go.
4. This deal shows that how successful Amazon has been in electronics stores and clothing shops.
5. Food e-commerce is harder than any other segments of goods accounting for only 2% of US's food-and-beverage sales, so even Amazon provides the service in only a few cities.
6. Nevertheless, acquiring Whole Foods will have an outsized impact on Amazon's effort to tackle the problems above.
7. First, using its arsenal of cash, Amazon can increase Whole Foods' offering by enhancing Instacart or deploying Amazon Go.
8. Whole Foods will give a better understanding and expansion into the grocery business, for example, by cold supply chain and more data on how consumers shop, how to spot promising local brands, and how to expand private label goods. Also, Amazona can provide a strategy of lowering margins and gathering data, then scale up the few that work.
9. Walmart(15% of grocery market) paid $3bn for Jet.com and is still formidable, but shares for Walmart, Kroger(2nd biggest chain), and other retailers plunged.
10. It can trouble other types of retailers, too, from home-goods like Bed Bath & Beyond to drug stores like CVS, detergent sellers, and other household products, because once customers get used to buying from Amazon, they tend to buy more and more goods there.
11. There are growing concerns about Amazon's too high market dominance, currently, half of all new online spending, from retail to cloud computing and from entertainment to advertising.
12. Nevertheless, the deal gives Amazon only one-fiftieth of the grocery market, and a giant like Walmart is more likely to intervene and make it a higher offer. Barring that, it will end in six months.
Words and expressions
1. shudder: (of a person) tremble convulsively, typically as a result of fear or revulsion
- tremble: shake involuntarily, typically as a result of anxiety, excitement, or frailty
- convulsion: a sudden, violent, irregular movement of a limb or of the body, caused by involuntary contraction of muscles and associated especially with brain disorders such as epilepsy, the presence of certain toxins or other agents in the blood, or fever in children
- epilepsy: a neurological disorder marked by sudden recurrent episodes of sensory disturbance, loss of consciousness, or convulsions, associated with abnormal electrical activity in the brain
- revulsion: a sense of disgust and loathing
2. measly: contemptibly small or few
3. contempt: the feeling that a person or a thing is beneath consideration, worthless, or deserving scorn
4. scorn: the feeling or belief that someone or something is worthless or despicable; contempt
5. despicable: deserving hatred and contempt
6. on the face of it: without knowing all of the relevant facts; at first glance
7. juggernaut: a huge, powerful, and overwhelming force or institution
8. mouldy (moldy): covered with a fungal growth that causes decay, due to age or damp conditions
9. enmesh: cause to become entangled in something
Permalink: http://eoesociety.blogspot.com/2017/06/te-article-summary-jun-16th-17-whole.html
Whole wallet
An industry shudders as Amazon buys Whole Foods for $13.7bn
Investors hammered the shares of other grocers in the wake of the deal
June 16th, 2017, New York
Summary
1. On June 16th, Amazon acquired Whole Foods for $13.7bn, an organic grocer, now controlling 1.4%, slow relative to 32% of its Chinese rival, Alibaba.
2. Whole Foods are not juggernaut(giant) but has about 450 stores in the US, the UK, and Canada. American shoppers have many other options to avoid its pricey products too.
3. This deal is ground-breaking in terms of the scale, 10 times larger than any the e-commerce has bought, along with its experiment of physical retail such as bookstores and a new style of grocer, Amazon Go.
4. This deal shows that how successful Amazon has been in electronics stores and clothing shops.
5. Food e-commerce is harder than any other segments of goods accounting for only 2% of US's food-and-beverage sales, so even Amazon provides the service in only a few cities.
6. Nevertheless, acquiring Whole Foods will have an outsized impact on Amazon's effort to tackle the problems above.
7. First, using its arsenal of cash, Amazon can increase Whole Foods' offering by enhancing Instacart or deploying Amazon Go.
8. Whole Foods will give a better understanding and expansion into the grocery business, for example, by cold supply chain and more data on how consumers shop, how to spot promising local brands, and how to expand private label goods. Also, Amazona can provide a strategy of lowering margins and gathering data, then scale up the few that work.
9. Walmart(15% of grocery market) paid $3bn for Jet.com and is still formidable, but shares for Walmart, Kroger(2nd biggest chain), and other retailers plunged.
10. It can trouble other types of retailers, too, from home-goods like Bed Bath & Beyond to drug stores like CVS, detergent sellers, and other household products, because once customers get used to buying from Amazon, they tend to buy more and more goods there.
11. There are growing concerns about Amazon's too high market dominance, currently, half of all new online spending, from retail to cloud computing and from entertainment to advertising.
12. Nevertheless, the deal gives Amazon only one-fiftieth of the grocery market, and a giant like Walmart is more likely to intervene and make it a higher offer. Barring that, it will end in six months.
Words and expressions
1. shudder: (of a person) tremble convulsively, typically as a result of fear or revulsion
- tremble: shake involuntarily, typically as a result of anxiety, excitement, or frailty
- convulsion: a sudden, violent, irregular movement of a limb or of the body, caused by involuntary contraction of muscles and associated especially with brain disorders such as epilepsy, the presence of certain toxins or other agents in the blood, or fever in children
- epilepsy: a neurological disorder marked by sudden recurrent episodes of sensory disturbance, loss of consciousness, or convulsions, associated with abnormal electrical activity in the brain
- revulsion: a sense of disgust and loathing
2. measly: contemptibly small or few
3. contempt: the feeling that a person or a thing is beneath consideration, worthless, or deserving scorn
4. scorn: the feeling or belief that someone or something is worthless or despicable; contempt
5. despicable: deserving hatred and contempt
6. on the face of it: without knowing all of the relevant facts; at first glance
7. juggernaut: a huge, powerful, and overwhelming force or institution
8. mouldy (moldy): covered with a fungal growth that causes decay, due to age or damp conditions
9. enmesh: cause to become entangled in something
Permalink: http://eoesociety.blogspot.com/2017/06/te-article-summary-jun-16th-17-whole.html
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