This is a curious announcement by Amazon — detailed plans to launch a dozen or so grocery store in a variety of cities — at a cheaper price point than WholeFoods.
Wait a second — they own WholeFoods. So what the fuck are they doing?
Here’s a better question.
Do you think Amazon will launch a chain of small stores, like Trader Joe’s or launch BIG ASS stores, like Costco? What do you think Amazon wants to do — go big or go small?
If they went big, those stores could also double serve as storage facilities for their other businesses. If they go small, it doesn’t even move the needle for them — very Un-Amazon like.
Shares of KR are down 3.2%, while COST is -1%, and WMT down less than 1%.
Clearly the groceryFAGS aren’t remotely concerned right now. We’ll see about that.
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Sounds more like they are going after Aldi than Costco
Vewee vewee interesting. Hmmm
Like the thinking here…Thanks for the post Fly
Like Berkshire Hathaway, Amazon is in the situation where anything that moves their needle is huge. When they eventually screw up, it will be equally huge; but for now, get out of the way or be crushed.