Amazon’s boss Jeff Bezos wants to lose the “whole paycheck” moniker for Whole Foods.
Bezos came out on Thursday saying now that the federal government has approved the $13.7 billion deal to buy the upscale grocery chain, he would slash prices beginning Monday.
On the news many other grocery chains stock fell more than 8% on the premise that Amazon would do to supermarkets what it has done to retailer stores.
Amazon’s long-term business plan of building customer loyalty over short-term profits will probably throw the entire grocery store industry into a tailspin as Whole Foods slashes pricing at the expense of margins.
Bezos will put profits on the self for market share, just like it did with book selling in the beginning.
Bezos also pointed out that the estimated 60 million Amazon Prime customers will get additional savings and online shopping options through Whole Foods. Amazon will put lockers in the chain where customers can pick up their orders.
Bezos will certainly get the “organic” growth for Amazon by beating down the “whole paycheck” image.
Out with the old and and in with the new at double the price.
That’s what we have in the markets today. Wal-Mart has a market cap of $236B, while Amazon’s value is twice that at $478B with a share value of nearly $1,000 as compared to $78 for the predominantly brick and mortar retailer.
Also, bitcoin in the next few minutes may be worth twice the price of an ounce of gold, again.
On Tuesday it was reported that former SAC Capital chief Stevie Cohen is looking to raise at least $10B to add to his own $11B for his new hedge fund to launch in January.
Cohen was riding high until the Securities and Exchange Commission forced him to shut it down in 2013 and accept a four-year ban from the industry for not properly managing his staff when some SAC employees were charged with insider trading by then NY Federal Prosecutor Preet Bharara.
The doubling down on the new seems to be a signal of a top to the markets as the tried and true cannot find the legs to go to the next level as valuations are stymied thereby forcing capital to find a newly formed bubble.