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