TE_Summary; Food fight; Amazon's big, fresh deal with Whole Foods; Buying the upscale grocer is a new front in the battle with the beast of Bentonville
http://www.economist.com/news/business/21723868-buying-upscale-grocer-new-front-battle-beast-bentonville-amazons?journey=d
3. Nonetheless, the combined company would account for only 1.4% of US grocery market, Whole Foods customers are not mass market, no significant changes are not yet to be expected.
6. Margins are low, groceries are hard to deliver, and the shopping requires customers' inspections and trust.
9. On the same day, Walmart bought a menswear brand called Bonobos for $310m.
10. Amazon is trying to enmesh itself in customers' lives, to become a buying ritual of everyday life.
11. Its investment can be used for different purposes, not limiting the scope of business with the same boundaries where it has played its business.
12. Rivals would like regulators to intervene in Amazon's expansion, but it is improbable. Walmart could think of getting in the deal of Whole Foods to get regulator's attention though.
Food fight
Amazon's big, fresh deal with Whole Foods
Buying the upscale grocer is a new front in the battle with the beast of Bentonville
Print edition, Business, Jun 24th, 2017, New York
Summary
1. CEO of Amazon warned of stasis express willingness to buy Whole Foods for $13.7bn and announcing a new service to let buyers try clothes at home for free.
2. Amazon's two acquisition plans have caused big stirs to both apparel and grocery industries.
3. Nonetheless, the combined company would account for only 1.4% of US grocery market, Whole Foods customers are not mass market, no significant changes are not yet to be expected.
4. Despite the ambiguous impact, its competitors' share prices shrunk. Not what the deal represents but how it might change Amazon and up-end its rivals is important.
5. The grocery market is harder for e-commerce to conquer than office supplies and clothes. (10-year service, Amazon Fresh, has only 20-odd branches, while 3-year-old Prime now is in 31 cities.)
6. Margins are low, groceries are hard to deliver, and the shopping requires customers' inspections and trust.
7. Whole Foods' 450 stores, data on customers habits in physical stores, well-established supply chains and a roster of store-brand goods will be combined with Amazon's e-commerce business.
8. Walmart with revenues of $486bn compared with $136bn of Amazon paid $3bn for Jet.com for online services such as order and delivery, also avoiding stasis.
9. On the same day, Walmart bought a menswear brand called Bonobos for $310m.
10. Amazon is trying to enmesh itself in customers' lives, to become a buying ritual of everyday life.
11. Its investment can be used for different purposes, not limiting the scope of business with the same boundaries where it has played its business.
12. Rivals would like regulators to intervene in Amazon's expansion, but it is improbable. Walmart could think of getting in the deal of Whole Foods to get regulator's attention though.
Words and expressions
1. excruciate: torment someone physically or mentally
2. stir: commotion
3. enmesh: cause to become entangled in something
4. sour grapes: a negative attitude to something because they cannot have it themselves
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