Whole Foods gives Amazon nearly as many stores as Apple

From a Cult of Mac item posted Friday by Killian Bell:

Whole Foods currently operates around 456 stores worldwide, according to the latest data from Statista, while Amazon owns several of its own locations, including a bookstore in Seattle. In comparison, Apple boasts 496 stores across 21 markets. Whole Foods announced the closure of nine locations back in April following its sixth consecutive quarter of declining sales.

Here’s that Statista chart:

Whole foods bar graph

Click to enlarge. Not seeing the chart? Try the website.

Want more on Amazon’s $13.7 billion acquisition? Feast yourself here. Friend-of-the-blog Richard Wanderman recommends Farhad Majoo’s take in the New York Times: In Whole Foods, Bezos Gets a Sustainably Sourced Guinea Pig.

14 Comments

  1. Robert Harris said:

    I fail to find the comparison of the 2 businesses. As a shareholder of both I would like to see Apples P/E match that of Amazon

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    June 17, 2017
  2. David Emery said:

    How long before some idiot tells us how Apple -must buy- Trader Joe’s so it won’t lose market share to Amazon? 🙂

    1
    June 17, 2017
  3. Richard Wanderman said:

    What the NY Times piece showed me is how many irons Amazon has in the fire. Like The Washington Post, Bezos may simply hold and tinker with the company and not do much to threaten other grocery chains. I think this was a smart buy for him, even if he does nothing to merge Amazon technology with Whole Foods’ retail location.

    I’m a long term holder of Costco stock and while it took a hit yesterday I don’t see how Amazon/Whole Foods is a threat. Totally different shopping experience and demographics. I’ll probably buy some more Costco if it drops a bit more. Same with Apple.

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    June 17, 2017
  4. George Ewonus said:

    At this point I don’t see the validity in comparing number of stores. It has to go deeper than that. How many countries does Whole Foods service vs Apple? What are Apple’s store margins vs Whole Foods? What percent of Amazon’s cash went into this deal? I am certain that this will be an ‘experimental platform’ for Amazon but is it the platform and size that they need?

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    June 17, 2017
  5. Fred Stein said:

    I love Apple, Whole Foods, and Amazon and own Apple and Amazon. Numbers of stores? Meh.
    Amazon will work miracles with WF. First by improving their supply chain logistics they’ll improve operating margins. Instacart, Blue Apron etc. watch out. Amazon’s going for it. Amazon tech will improve the in-store search for products, to their chronic mis-pricing and out of stock situations. Ideally this will not compromise the WF empathetic attitude.
    A while back, WF toyed with opening smaller stores to compete with Trader Joe’s limited selections, but better prices. Perfect for a Bezos style thinking.
    And my favorite: Create a WF grub grab at the airport.

    2
    June 17, 2017
    • Richard Wanderman said:

      I agree. The store chain that will potentially be hurt the most from this is Trader Joe’s if Bezos and Co do as you think they might, and I think you’re spot on.

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      June 18, 2017
  6. George Ewonus said:

    Excellent points, Fred.

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    June 17, 2017
  7. Robert Paul Leitao said:

    Whole Foods needed to find a buyer with deep pockets and Amazon needs to find ways to fend off Walmart’s encroachment in online sales. The looming battle between the retail giants is an important subplot in Amazon’s decision to purchase Whole Foods. Although the two enterprises are coming at the market from different directions, bricks and mortar fresh food sales is just one flash point in the increasing competition between Walmart and Amazon.

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    June 18, 2017

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