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How will Amazon transform Whole Foods? (The 3:59, Ep. 242)

2017-06-19
and good morning from the scene at New York studios it's the 359 podcast episode 242 and in the house today we've got Joanie soles Minh and Roger Chang good morning everybody how was your weekend morning good no that was all right i sat around and played Shenmue 2 it was obscurus out there I I know the game well this action never played it but I'm jealous that I could like having to just sit around all day and play the game I'm Linda capes and stuff huh you're the ones having kids instead I played a video game but it was Pokemon Go which we're gonna talk about exactly very nice so we'll be talking about Amazon whole set of whole foods wholesale which obviously was announced on Friday weekend waiting in a chance to really break it down we're gonna talk about that as well as Jay Z's new 444 album which is exclusively on title and as Joan hit to that we'll be talking about Pokemon go and some of the big changes coming to the game and whether or not you guys are actually still playing it which Jonah's eppley there you go all right as always if you have any questions leave it in the comment section brian will pick up the best and we'll get to them in over less than four minutes three minutes and 59 seconds to be exact in three two welcome to the 359 I'm Roger Chang I'm Joni salzman Amazonas getting ready to transform the way we grocery shop at least that's what we think the online retail giant is going to do with this 13.7 billion dollar acquisition of Whole Foods for now Amazon says little change but has to be just a matter of time before we see a big shake up the status quo Joe what are you looking forward to most from this deal well well we don't really know how things are going to change right both Amazon and Whole Foods were pretty tight-lipped about what this could actually they didn't give tilt their handle no conference call for a deal display oh my really weird that's unusual Whole Foods CEO staying in place right they're headquartered in Austin still yep so there's not a lot of big changes that we can kind of piece together but knowing how Amazon operates I'm looking forward to better delivery yeah from Whole Foods right now they use instacart yes uh which works well but I mean Amazon that's that's right getting things I mean they've got amazon has Amazon fresh right now it's in select markets you know it's not as broad-based I don't think it's as widely used as they would like and I think they're gonna use Whole Foods is a kind of way to kind of pump up that that part of the business and I'm curious about the possibility of lower prices yeah it's as weird consec whole foods to sort of known as a premium brand paycheck right you hold a check exactly like you know it's all about natural organic foods there everything's a little bit pricier then your normal grocery grocery shop but Amazon's no is a budget brand so we'll see how those two kind of makes I'm kind of hopeful that you know some of those those deals do come flow through I think I mean I can't think of any other vertical or whatever you want to call it any other kind of category where Amazon's gotten in and they haven't lowered prices yeah that's true and Amazon has shown and in multiple occasions that they're not as worried about near-term profits right they're talking about market share they really want to win your business over get your loyalty all right so next up JC's new album 444 will drop on June 30th exclusively on title which is good news for title subscribers and spirit customers who get title as part of the deal they struck in January jay-z owns taken title so it's not a surprise that it's getting exclusive but do you think this makes sense it makes sense for title and that the only thing that head--oh really has going for it is the cachet of the artists that are involved jay-z being the most prominent he's the most the biggest mover and shaker has the biggest stake of all the kind of marquee artists that are involved right and so all I really have is cashing in on the fact that they've got people like jay-z and Beyonce and Kanye right and um a lot of other really high profile artists I mean is that enough for people to switch over that's the problem though it's a very the research says that exclusives don't usually do much because people will sign up listen to it and then sign back out again um there's so much churn it's so easy to stop paying for that so yes that it doesn't engender loyalty but the difference with title is that with title they sometimes go like seriously all in on exclusivity like lemonade I believe is still not allowed on spot oh oh yeah oh yeah Beyonce's last which rights which was huge um so I little bit of it it depends on how long jay-z keeps this as an exclusive or title we don't know how long it's going to be going to be forever or if it's going to be more like life of Pablo from conch right look so a shorter window yeah which was the shorter one alright lastly Pokemon go is getting a few more updates including an overhaul of its gym and boss battles it's nearly a year old so I mean do you think it's a little too late at this point or I mean you're still playing the game which is surprising to me but what do you think of these these new updates I think that these will be fixing things that are really frustrating about the game right gym battles are really stupid and annoying they are they're just basically it's the the folks who spent all the time and money sitting and camping on these gyms basically with their super power Pokemon they're changing part of it I still don't I don't know for me it's like unless you can get player versus player battles in there it's yeah I feel like it's not enough to hook me back in III can see that too and I think a lot of people that left Pokemon like like the two of you aren't getting lured back right um what what keeps you playing I don't know I walk around the city and I'm traveling around the sea all the time and also um my daughter has figured out that if she says I want to see a Pokemon around me she can play with my phone because she's smart like that yeah so um once I don't know and then you get start I mean all the things that keep you suckered into a game I have worked like the streaks and blah blah blah blah okay but I don't put a lot of um African and you ever spent money on the camera no never spent money alright from or these stories check us out on CNN I'm rock Jang I'm Joanie salzman thanks for listening boy people are really talking about this Amazon thing yeah yeah it's a big ogre it's a big deal I was asking you guys before the show like did we see this coming at all now I mean yeah there was some speculation I don't know if Whole Foods was actually specifically gray but we're just saying like the the rumor for last week was Amazon was looking to buy slack which now I'm wondering is some sort of was some sort of weird smoke screen the right foot up distract everyone from the actual real deal which is I mean it's huge it's 13.7 billion dollars their biggest deal before with was I suppose for a billion yep yeah and so I mean this is a huge scale for a bet Zappos could actually be a good and maybe it could be a good sort of hint at how hopeful is gonna feel cuz Zappos has been left pretty much yes it does run independently respirating independently which also much smaller acquisition yep the video game streaming service which that's also still pretty independent of Amazon so we just seem like that would be audible is much more tightly integrated I think but that's because it's built into the library but it start it for those you have the audible Astro doesn't it's not like we've got audible we're shutting it down I feel like if you're spending this much money you can't just leave it alone like just especially since wholefoods as a standalone business was not doing well yeah before this deal was struck I mean they'd they'd they were shrinking stat shrinking stores they were coming back in the forecast the fact of the matter is like that the whole what differentiated them was all the natural organic stuff like every other store who started offering it a lower price so yeah the whole paycheck thing kind of loses its appeal we can get the same stuff across the street for Less yeah a few people are asking if they're going to start cutting jobs or turning them into like Amazon go stores right question I think one thing that I have my fingers crossed for is that Amazon is the place I go to get obscure old foods like Serge uh oh yeah oh my god search cold dunkaroos which are no longer took a root they are no longer available stateside you can only like them imported that's kind of through Amazon so if those things start showing up on shelves and Whole Foods I'm all in on this wow that is a really specific feature this is appeal to ya let's talk about what this is gonna do for current employees they said that they're not gonna be laying off any workers at Whole Foods so initially the idea is not to UM like completely reform at what Whole Foods is and in so doing cutting off a lot right I mean the fear war was you know it stemmed from that Amazon go experiment in Seattle that's this like there's they're no employees work in the store it's basically you just pick up food you walk out and they'll charge you automatically you know a lot of people sort of looked at as sort of the future of the deaf jobs yes you know for one I don't think that they could even got it right yet so I think there was also a new Coast report been talked about in his story the idea of the second floor was all automated like you picked your food everything would get boxed and by robots basically so yeah that's what a few people are speculating also in the chat they said there will probably fire all the workers play some robots and people will be dazzled by the 5% savings and I like that Matthew datcha expanded on this that previous comes from sky Raven Thank You Matthew our good boy Matthew says what about robot and glove combo that allows you to virtually feel what the robot feels so you can like pick your produce ah like that's how sensation you also a food like me camera mounted on it so you know like you're kind of virtually there it also needs sense of smell too like touching fondling your listen meows ER we're not far away from smellivision we're just getting frightening lead to that wall-e point that's all I'm saying that's not but what I could see logistically happening is um their Amazon Prime with the cold Amazon Prime fresh refreshing Amazon fresh so that would become instantaneous never actually happen in your local market you could synchronize with your zip code and like allegedly make that order online and have it there in an hour yeah I think there's some of them kind of do all for now but this is probably what they're gonna do I think that's a benefit they're gonna have in the back end is they'll have access to whatever the warehouses the places to store that food more locally as opposed to I don't even know how they do it now this is really just one big warehouse real estate hunt for Amazon at this point yeah yeah and it's what's four hundred plus stores basically it's 400 plus hubs that they could then sort deliver you food a lot more efficiently Pamela is asking do you think you could pay with your Amazon account in store I bet that would be yeah I'm imagining like Amazon Prime customers will get some sort of like that would be nice or something I don't mean pay with that but granted I do my shopping on Amazon to save money I stay away from Whole Foods to save money true also I got to give a shout-out to dr. Faye in the chat who had the best comment of the day he says I as well spent 13.7 billion at Whole Foods that's what it feels like sometimes she does know I think that's that's part of the problems that yeah well oh that's an interesting idea the idea that like a Prime customer might get like you know with like Prime parents you get a 10% discount yep maybe if you're a prime subscriber you get a discount and that makes Whole Foods prices kind of more at parity with other yeah stuff yeah and that's and that's what sucks you into the Amazon universe true uh maybe they'll send you like an Amazon Prime card to use at Whole Foods or something yeah oh that could be interesting pocket Mars speculating you know would they do a SUBSCRIBE thing where you can subscribe to your daily or weekly needs I mean they have these read and save now for their own yep site but now they can localize it well I mean I think that's what I think that's what amlong fresh is ultimately gonna be like and that is an extra fee to pay on top of your you know hundred dollar Amazon Prime subscription right so I think that's that's what they're really ultimate trying to push is pushing a bad service getting people subscribe to that I've been using Whole Foods to sort of the backbone for that that delivery mechanism I liked some of the the headlines around this weekend were like Amazon is trying to be Walmart before Walmart becomes Amazon yeah just like there's two very different demographics going on in between the two that's true not to be too crass about it but all right you saw Walmart by jet to try to be more like Amazon right see the reverse kind of I think there's definitely gonna be a lot more butting of heads between Walmart Amazon I mean it's interesting its competition is good for us as consumers yeah um but there is definitely a an air of Millennials versus everybody else going on between these two markets yeah it's uh it's a nation yeah I feel like everyone gets a samples on down like that's well maybe I wall from Walmart perspective yeah it's it's but there are you shopping while Mart and if they do it warmer are there a lot of Millennials the shuffle Walberg no no that's what I'm saying as Millennials latch onto Amazon and like yeah everybody else it's been on board with Walmart and if Walmart gives thing a better online opportunity that gives them more chance to stay with their current I actually think I'm gonna disagree with you I think that I don't think there's a big age differentiator between Amazon and Walmart I think it's it's income bracket demin okay yes yeah that's probably a much better way to look at it um I'm just getting that the whole foods hipster I don't win here yet sure if you shop at Whole Foods you probably shop at Walmart probably not maybe but no some of us do both yeah well if there was a Walmart or a yeah like we're all New York gotta go deep out into Jersey well I mean I live in Long Island so I do yeah I do have a Walmart near me I went in once and marveled at it cuz it was so big yeah I worked at Walmart before I came here really yeah as a were you agreed er no would you let me greet people no I was a mother's would like to turn their children are now welcome to Walmart what do you want no no I was dragged grocery so oh yeah my retail experience cuz we had one of the largest on the East Coast where I wasn't Wow where was this I worked out of one in pomfritt New York which is a suburb of Fredonia where else okay that was a it was a good work experience he definitely met a number of characters and I lost like 20 pounds that summer because I had to walk miles on miles miles every day yeah yep uh-huh what we're talking though about Walmart versus Whole Foods it's important to point out so Whole Foods has what was it like 400 something locations is that right Whole Foods well hopefully Jeff for Walmart has like 2,000 Yogi's Oh wake there's no compare yeah York yeah right yeah all right probably about time to wrap it up a few last minute comments pamela speculates that Amazon fresh will now be the biggest supermarket on the web Chris Gonzalez is wondering if Amazon fresh will result in being cheaper now that they are more localized through Whole Foods to win extent and then Jacob puts the kind of the pin in it was saying I think whoever can get to your door fastest with the most convenience will win this and as right now Amazon is ahead yeah I mean I agree that's ultimately what this is about is trying to get you food get your food delivered faster it's so amazing that we've gone to the point where like going to the grocery store is in too much of a hassle yeah well is a so I mean who complain about the 30 second coffee my kid and I like Mike in my why's that that's kind of hassle I kind of dread doing it now like it takes if I went by myself it would take like minutes but I with my kid it's like an extra 13 I always wind up behind the old woman with like 37 coupons I got nothing against using the coupons I clip them myself but uh I would always end up against that lady who watches too much extreme couponing it's true with with all this I mean you can sit home play Shamu even longer way more times got to spit that back in my face sorry stick Gabe shoes for a weekend and we get in I mean it's an easy one to binge on I guess it is it was really busy moving forklifts alright if you liked anything you saw or heard here check us out on SEANET our podcasts also available in iTunes tune in stitcher SoundCloud Feedburner and Google Play Music y'all tomorrow bye you
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