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.
True. The spark went out when Amazon got involved. They treated their customers like Amazon shoppers. Nope, you can't outsource local customer service.
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.
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.
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
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".
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.
@@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.
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).
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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.
$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 ?
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.
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
@@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.
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.
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.
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.
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.
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.
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…
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…
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 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! ☠️
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.
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.
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.
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.
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.
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.
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.
@@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.
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.
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.
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.
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
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.
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.
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.
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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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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??
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.
@@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.
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.
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.
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.
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.
@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.
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.
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!
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
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.
2:40 - Fairly clear misreading of the quote there. Cupertino is *in* Northern California, the quote was comparing stores in different towns within the region (Los Gatos, Los Altos, Cupertino).
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.
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.
@@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…
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.
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
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
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.
There will be clashes at the dumpsters between the folks that bought a phone so they could get food delivered. Phone cost more than the food needed . . .
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
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.
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.
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
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.
One thing that Whole Foods has going for it… the markets that they Are in are VERY lucrative. They do need more distribution centers across the United States. I still think they’ve got a chance. Plus, the money behind Amazon is unbelievable.
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.
I used to work for Whole Foods at one point. The atmosphere is generally the reason I don’t shop there even then. Higher prices on everything, and Whole Foods typically appears to a specific clientele who enjoys organic foods, and non-GMO items. Because customers know they can afford it, and they think they are “healthier” then everyone, they are typically the more snobbish and rude from the people I had to deal with. It’s not called Whole Paycheck for nothing. Personally I don’t see an issue with GMO and non-organic items. The only thing I search for organically is milk and sometimes my meat/protein, but that is because it was recommended by my dermatologist.
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'.
I live in the UK. I considered amazon food for my online grocery shopping, but prices are higher than my go to local supermarkets ocado and sainsburys.
Amazons advantage in “data” is hugely overstated. Data is not as rich and lucrative as people seem to think. Consider for instance, that every grocery store already has data lol. Knowing what “locals want” doesn’t take a tech giant. You just look at what sells in the store. It’s basic, simple, easy peasy to capitalise on without much effort. Amazon doesn’t have a leg up here. “Personalisation metrics” are really not that valuable at all.
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?
There arent really many Whole Foods around. They have some neat stuff. But they are way too expensive. People are getting poorer. So they probably wont be growing as much.
The things they specialized in like organic and hippy foods like liquid aminos I can get at my Kroger related local stores. They don't offer any advantage, they just cost more and the first store in the area has been rearranged and isn't even nice to visit.
The best thing (for me) in Amazon buying Whole Foods is that I can bring my Amazon returns to Whole Foods where I invariably do some grocery shopping afterwards which I wouldn’t do if not for that service. My local WF is the closest grocery to me yet I usually prefer the bigger chain 1/2 mile further up the street.
There is a Whole Foods store near me but I never go because everything is so expensive . There is a Walmart near by as well and Walmart is always packed since they have some of the lowest prices around
How is it legal for amazon to be the biggest server farm, online retail, a video streaming and production,and grocery store. How does it not break anti trust laws.
Because these are all incredibly competitive industries generally with low margins. Amazon needs to own over 50% of one of those markets for regulators to consider anti-trust.
@@iceman18211Minor correction: you don’t need to cross a 50% threshold to run afoul of antitrust law. Market share is just one of several variables that antitrust authorities use to judge whether companies are unlawfully dominating an industry. It’s perfectly possible for, say, three companies, each with 33% of the market, to be judged to be anticompetitive if their scale is judged to be harming consumer welfare.
I hate ghe self checkout lines, that is literally the company passing to the customers the job of thr cashier, so those Amazon convenience stores sound like nothing but a hellish Nightmare
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…
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.
I’m from Los Angeles and saw/went to the first Fresh store in Woodland Hills. Used to be cheap. Prices went up. The Dash cart was more of a gimmick that you got some cardio pushing around. The store on Colorado Blvd in Pasadena hasn’t been opened long and they’re reformatting the store, shut off the Just Walk Out system, and it’s empty as a Kmart when I go. Service meat counter was closed. There’s a Target, Smart and Final and Ralphs (Kroger) are nearby with better prices and variety. Aldi is also in LA now, who has prices better than Amazon.
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.
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.
My neighborhood has a smaller Whole Foods with Just Walk Out and there is a group of people who just hate it. Richer people who would’ve been at Whole Foods are now at the new super expensive Erewon.
0:22: Amazon's grocery strategy has not lived up to expectations, with slower growth compared to competitors. 1:33: Whole Foods' growth has been stagnant since Amazon took over, growing only 10% since 2018. 1:57: Amazon has refreshed the Whole Foods 365 private label line and implemented personalization algorithms to customize product selection. 5:23: Amazon Fresh stores have not fully utilized their scale and technology to disrupt the market. 6:22: Customers find the stores bland, expensive, and lacking in product selection. 7:05: Amazon plans to refresh store design, add more items to inventory, and introduce new food stands to improve the stores' performance. 10:12: Amazon's recent announcement allows non-prime members to place orders on Amazon Fresh, but it may not attract many customers. 11:11: Grocery delivery is expensive, and Amazon's break-even point is estimated to be between $90 and $100. 12:08: Amazon's strategy for grocery seems to be small and incremental improvements rather than anything truly different. Recap by Tammy AI
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.
I pick up my Amazon Packages at Whole Foods & only buy a few things that I can't get at Ralph's. Amazon Fresh is 4 miles away, in an area I don't frequent, so I don't get there often.
I would never shop at an Amazon fresh, I already feel weird walking out a show without buying stuff (I swear that I never stole anything). Entertaining into a shop, take some stuff and just exit sound and feel too weird
16 years? Youre baiting... Cupertino is Northern California... the problem w/ Whole Foods on Amazon, is they don't have the production capacity for doubling or tripling volume online, which was how Amazon makes $$$.... their skus are always out of stock
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
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.
That last part was already a thing of employees. 😂 All I wanted was peanut butter but no almond butter was better
True. The spark went out when Amazon got involved. They treated their customers like Amazon shoppers. Nope, you can't outsource local customer service.
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.
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.
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
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".
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.
@@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.
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).
..
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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
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definitely overrated. at least have different stuff from other grocery stores like Trader Joe's does@@sakenu16
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.
ok
That IS the deciding factor.
Area man prefers cheaper prices…. Revolutionary!
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
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”
@@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”
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.
@@shadowninja6689they probably do have a case but the process is so slow they might be better off just finding a different job.
Probably drugged out on Xanax so pretty sure you deserved it
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
I agree but often times, the competitors do the same problematic things.
$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 ?
@@theaconite1400The difference is those competitors are far cheaper
Most people don't care otherwise walmart never would have grown.
and if they use contactless methods too
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.
Wait you pay with a debit card? why? that's literally the least safe way to do it!
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
why?@@Ushio01
@@Ushio01how is it least safe?
@@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.
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.
Amazon and Whole Foods deserve each other. They should call the chain Low Margins.
Amazon made Whole Paycheck pointless. Support local farmers....
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.
It's been 16 years since 2017?!
It's already 2033
Time is flowing like it's liquid with no resistance.
Covid lockdown really messed with our sense of time.
I played that a couple of times i thought i was hearing my own things
Yeah. Want me to pass you a calculator?
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.
And they want you to use your palm to pay .. nope!
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.
Wait- Calvin Klein and Tommy Hilfiger were once considered 'luxury' brands? I've only ever seen them as basic, cheap, and common.
@@InventorZahranYeah, they definitely were luxury at one point.
Then they would be Erehwon.
@@void________That's absolutely crazy to me lmao
I would have to agree, but they would need to hire some real chefs for their prepared foods (hot and salad bars, etc…)
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.
That's good haha. I'm going to borrow that one
Half Foods?
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…
Organic is such a waste of money. Nothing in this world is organic.
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…
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!!!
The Amazon app is getting as bloated as iTunes before I gave up on everything Apple.
@@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! ☠️
Curating? I'm not sure either. Seems like it's all data and AI driven with maybe a bit of human review
It's a strange time when the corner store is easier, faster, more social and cheaper than the biggest company in the world.
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.
@@Thingsyourollupindeed
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.
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.
And they want you to use your palm to pay ... nope!
I think Kroger's market cap was about $13 billion when they acquired Whole Foods at $14 billion.
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.
@@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.
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.
@@phoenix5054But you must consider the debt load. EV is often higher than MC and is the actual price paid.
@@weird-guyRevenue without profit is useless
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.
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.
They build and own most of their stores
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.
@@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.
probably not just the stores, but also the former stock/market cap too...
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.
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.
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.
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
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
Maybe he meant 16 years since Amazon first started the grocery business not 16 years since the 2016 purchase of WholeFoods.
Think it was supposed to be 6 not 16
Yes, the online shopping was totally frustrating. I gave up. 3 separate checkouts for 3items with 3 wildy different prices was ridiculous.
It's still cheaper than buying Twitter.....
I only go to Whole Foods to return packages to Amazon
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.
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.
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.
@@mkvenner2yup spot on, pattern recognition can get it to a close estimate of buying habits.
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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.
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.
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
Overpriced food, you can buy the same thing at a regular grocery store for cheaper
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.
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.
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.
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.
Yeah man. Find another job. I'd rather work at a gas station.
@@robinly I do uber lyft, doordash etc. so if I drop whole foods it won't be a huge loss.
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.
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.
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.
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.
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??
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.
@@patlynch6517 Apparently so.
@@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.
Isn’t waitrose the better one in the UK? I could be way off but I thought I remember that
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.
I work at Whole Foods and it’s all true. I still like it though they pay more than most grocery stores
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.
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.
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.
@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.
@@davidknightxIt's because they want to control the "natural" food industry.
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.
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!
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
It's strange. Here in Massachusetts they've built out 5 Amazon Fresh stores that have been empty for a year plus
Great episode, thanks for the deep dive on this.
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.
2:40 - Fairly clear misreading of the quote there. Cupertino is *in* Northern California, the quote was comparing stores in different towns within the region (Los Gatos, Los Altos, Cupertino).
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.
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.
I ate a Krispy Kreme..once. What a vile experience…
@@liannebedard5521 Really? I didn't think they were any better than a regular donut, but "vile"?
@@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…
@@liannebedard5521 Interesting. I guess when I'm eating a donut (which is a rare treat), I expect it to be a sugar bomb 😁.
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.
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
😂😂😂😂 weren't u crying about china
@@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.
No they just need to reduce grocery prices that's all
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
Chicken thighs went from 449 to 729 this week alone 🤯🤯🤯 like wtf Jeff
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.
How American, "we seem like a bland corporate vacuum"
"quick, sell doughnuts"
Yup Most Americans are forced to eat from the Dollar Stores now
There will be clashes at the dumpsters between the folks that bought a phone so they could get food delivered.
Phone cost more than the food needed . . .
What is that apostrophe doing in the title there? What is that?
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
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.
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.
7:48 Anyone knows why Aldi egga are so expensive?
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
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.
One thing that Whole Foods has going for it… the markets that they Are in are VERY lucrative. They do need more distribution centers across the United States. I still think they’ve got a chance. Plus, the money behind Amazon is unbelievable.
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.
I used to work for Whole Foods at one point. The atmosphere is generally the reason I don’t shop there even then. Higher prices on everything, and Whole Foods typically appears to a specific clientele who enjoys organic foods, and non-GMO items. Because customers know they can afford it, and they think they are “healthier” then everyone, they are typically the more snobbish and rude from the people I had to deal with. It’s not called Whole Paycheck for nothing. Personally I don’t see an issue with GMO and non-organic items. The only thing I search for organically is milk and sometimes my meat/protein, but that is because it was recommended by my dermatologist.
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'.
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 .
I live in the UK. I considered amazon food for my online grocery shopping, but prices are higher than my go to local supermarkets ocado and sainsburys.
Amazons advantage in “data” is hugely overstated. Data is not as rich and lucrative as people seem to think. Consider for instance, that every grocery store already has data lol. Knowing what “locals want” doesn’t take a tech giant. You just look at what sells in the store. It’s basic, simple, easy peasy to capitalise on without much effort. Amazon doesn’t have a leg up here. “Personalisation metrics” are really not that valuable at all.
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?
There arent really many Whole Foods around. They have some neat stuff. But they are way too expensive. People are getting poorer. So they probably wont be growing as much.
They’re convenient but they can’t compete with other grocery stores that have a lot more affordable options.
The things they specialized in like organic and hippy foods like liquid aminos I can get at my Kroger related local stores. They don't offer any advantage, they just cost more and the first store in the area has been rearranged and isn't even nice to visit.
I didn't even know Amazon Fresh was a thing.
Palm scanners are the dumbest gimmick ive heard all week. My card does that. My phone does that. Why would i possible want my palm to do that.
Because they want to get rid of cash.
The best thing (for me) in Amazon buying Whole Foods is that I can bring my Amazon returns to Whole Foods where I invariably do some grocery shopping afterwards which I wouldn’t do if not for that service. My local WF is the closest grocery to me yet I usually prefer the bigger chain 1/2 mile further up the street.
0:29 16 years later?
Today I learned that 2017 was 16 years ago. Might want to check your scripts in the future
There is a Whole Foods store near me but I never go because everything is so expensive . There is a Walmart near by as well and Walmart is always packed since they have some of the lowest prices around
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.
How is it legal for amazon to be the biggest server farm, online retail, a video streaming and production,and grocery store. How does it not break anti trust laws.
Cause they don’t have a majority market share in any industry, at least ostensibly. They’re very careful not to openly cross the threshold.
Because these are all incredibly competitive industries generally with low margins. Amazon needs to own over 50% of one of those markets for regulators to consider anti-trust.
@@iceman18211Minor correction: you don’t need to cross a 50% threshold to run afoul of antitrust law. Market share is just one of several variables that antitrust authorities use to judge whether companies are unlawfully dominating an industry. It’s perfectly possible for, say, three companies, each with 33% of the market, to be judged to be anticompetitive if their scale is judged to be harming consumer welfare.
I hate ghe self checkout lines, that is literally the company passing to the customers the job of thr cashier, so those Amazon convenience stores sound like nothing but a hellish Nightmare
TBH I fear Jeff Bezos
Daddy bezos isn't gonna harm you
He's moral
He's not worth your fear. There are bigger fish than him.
@mr-andrewhow so?
He looks like a movie villain 😂
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…
So what was founded as a healthy food chain is now going to have Krispy Kreme kiosks as you enter.
Its a pricing problem. Stores with half the number of employees should be cheaper, not 33% more expensive.
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.
That might be the first sponsored ad in a video I’ve ever considered signing up to on RUclips, wow!
I’m from Los Angeles and saw/went to the first Fresh store in Woodland Hills. Used to be cheap. Prices went up. The Dash cart was more of a gimmick that you got some cardio pushing around. The store on Colorado Blvd in Pasadena hasn’t been opened long and they’re reformatting the store, shut off the Just Walk Out system, and it’s empty as a Kmart when I go. Service meat counter was closed. There’s a Target, Smart and Final and Ralphs (Kroger) are nearby with better prices and variety. Aldi is also in LA now, who has prices better than Amazon.
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.
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.
Hard book sales are dropping and will soon no longer be a thing. People always need food and I think this switch in vision was brilliant!
My neighborhood has a smaller Whole Foods with Just Walk Out and there is a group of people who just hate it. Richer people who would’ve been at Whole Foods are now at the new super expensive Erewon.
0:22: Amazon's grocery strategy has not lived up to expectations, with slower growth compared to competitors.
1:33: Whole Foods' growth has been stagnant since Amazon took over, growing only 10% since 2018.
1:57: Amazon has refreshed the Whole Foods 365 private label line and implemented personalization algorithms to customize product selection.
5:23: Amazon Fresh stores have not fully utilized their scale and technology to disrupt the market.
6:22: Customers find the stores bland, expensive, and lacking in product selection.
7:05: Amazon plans to refresh store design, add more items to inventory, and introduce new food stands to improve the stores' performance.
10:12: Amazon's recent announcement allows non-prime members to place orders on Amazon Fresh, but it may not attract many customers.
11:11: Grocery delivery is expensive, and Amazon's break-even point is estimated to be between $90 and $100.
12:08: Amazon's strategy for grocery seems to be small and incremental improvements rather than anything truly different.
Recap by Tammy AI
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.
If your even half way decent at cooking Smart & Final, Ralphs, Food 4 less or even Vons have what you need.
I pick up my Amazon Packages at Whole Foods & only buy a few things that I can't get at Ralph's. Amazon Fresh is 4 miles away, in an area I don't frequent, so I don't get there often.
I would never shop at an Amazon fresh, I already feel weird walking out a show without buying stuff (I swear that I never stole anything). Entertaining into a shop, take some stuff and just exit sound and feel too weird
I have been in Whole Foods one time and have NO plans to ever go back.
16 years? Youre baiting... Cupertino is Northern California... the problem w/ Whole Foods on Amazon, is they don't have the production capacity for doubling or tripling volume online, which was how Amazon makes $$$.... their skus are always out of stock