In several previous off-topic threads, we have discussed the downfall of some rather well-known US companies (e.g., Sears, Radio Shack). One point that inevitably comes up is the attempted, or lack of attempted, changes within the store to bring it in line with current consumer practices.

When Amazon took over Whole Foods, I wondered what approach they would take for changing the image and niche that Whole Foods might fill. I suspected that the changes would revolve around the ability to deliver food. That seemed reasonable, at least to me.

Now, we see the first signs of changes to Whole Foods, but it is not about food delivery, it is about re-branding.

The new commercials look to me like a somewhat clever attempt to steer Whole Foods toward appealing to a millennial and near-millennial customer base that has deep pockets, or at least is willing to pay more to indulge a somewhat different buying attitude that has been standard where grocery stores are concerned.

The link below includes the new set of commercials. I laughed out loud when viewing the Vegan-turned Paleo.

http://adage.com/article/cmo-strategy/foods-unveils-campaign-amazon-acquisition/312210/

Not sure how successful that this will be, but is interesting to watch and find out.

 

INot sure how successful that this will be, but is interesting to watch and find out.

Interesting, and well done. Those ads all address the 'negative' image of Whole Foods that a non-regular customer might have, that's it's full of sprouts and twigs and disapproving hippies. By showing meat, cheese, diapers and so on, it looks a lot more inviting to all shoppers. If it works, it'll be a good move to get out of their niche. The risk is always alienating your base without attracting enough new customers to replace them.

 

Interesting, and well done. Those ads all address the 'negative' image of Whole Foods that a non-regular customer might have, that's it's full of sprouts and twigs and disapproving hippies. By showing meat, cheese, diapers and so on, it looks a lot more inviting to all shoppers. If it works, it'll be a good move to get out of their niche. The risk is always alienating your base without attracting enough new customers to replace them.

I say don't fix what ain't broke. Whole Foods was enormously successful catering to the hippies selling spouts and twigs and overly inflated prices. Stick with that.

 

I say don't fix what ain't broke. Whole Foods was enormously successful catering to the hippies selling spouts and twigs and overly inflated prices. Stick with that.

Yup, it is dangerous. Think 'new' Coke. But Amazon has grand plans and a lot of smart people. I bet they can pull it off.

 

Interesting, and well done. Those ads all address the 'negative' image of Whole Foods that a non-regular customer might have, that's it's full of sprouts and twigs and disapproving hippies. By showing meat, cheese, diapers and so on, it looks a lot more inviting to all shoppers. If it works, it'll be a good move to get out of their niche. The risk is always alienating your base without attracting enough new customers to replace them.

Agreed. It is very impressive how focused they are with targeted diversity. I looked at the actors and stereotypes they portrayed and thought they were a kind of nouveau Yuppie. They, Amazon, seem to know what they are after and it might very well work.

@spinnaker RE: don't fix what is not broken. Point taken, but I don't think that they bought Whole Foods to keep it as is, I think they bought it to grow, grow, grow.

 

Does this mean I’ll soon be able to get booze delivered paying with Amazon gift cards? Amazon stopped selling at the beginning of this year so it seems likely.

 

I bought some sandwiches and a bottle of tomato juice from Whole Foods and I will never do it again.

Most of the stuff at Whole Foods is like like eating cardboard and drinking transmission fluid. It's a wonder the company hasn't gone out of business a long time ago.

 

People want MORE. But not fast change.

I am not a gecko.

 

The new commercials look to me like a somewhat clever attempt to steer Whole Foods toward appealing to a millennial and near-millennial customer base that has deep pockets, or at least is willing to pay more to indulge a somewhat different buying attitude that has been standard where grocery stores are concerned.

Sounds an awful lot like... Whole Foods!

 

Sounds an awful lot like... Whole Foods!

See posts #2 and #3. See the first video in the link in post #1. The reputation of the 'old' Whole Foods would not cater to a Paleo diet. That is an example of Amazon's re-branding.

The former is a small subset of the latter. That is an example of increasing the size of the customer base.

 

This morning I read that Whole Foods is offering a 5% rebate when you are an Amazon Prime member using their card (Those who have the card, but who are not Prime members, will get 3% back on purchases at Whole Foods). https://www.usatoday.com/story/tech...-perk-5-back-whole-foods-purchases/353465002/

So, two-hour delivery (in selected areas), re-branding in commercials and now tapping into the loyalist Amazon customer.

I remain impressed.

 

I've been impressed with the effort Walmart is advertising, to go after Amazon with home delivery. There's no reason Walmart shouldn't be a good competitor. They have buying power, lots of trucks and stores and other supporting infrastructure, a well-know name, and on and on. The only thing keeping them from clobbering Amazon is their own lethargy. Can they pull off the transformation they need to make? Hard to say. They may be victims of their own success and will be changing too slowly, like Kodak.

 

I've been impressed with the effort Walmart is advertising, to go after Amazon with home delivery. There's no reason Walmart shouldn't be a good competitor. They have buying power, lots of trucks and stores and other supporting infrastructure, a well-know name, and on and on. The only thing keeping them from clobbering Amazon is their own lethargy. Can they pull off the transformation they need to make? Hard to say. They may be victims of their own success and will be changing too slowly, like Kodak.

I hear you on Kodak - one of the worst stock decisions I ever made. My very first digital camera was a Kodak (1.2m I think). This is only my opinion, but at the time and as far as the US went, they were the big name in cameras. For reasons totally unknown to me, they refused to develop digital cameras as Nikon, Fuji and Canon were skyrocketing. Instead, they seemed to be obsessed with paper and printed photographs. It is as though they decided that, in the end, people will always want prints (they don't) and we will make are money on the paper. Well, I guess hindsight is 20-20 and all that.

Don't know if Walmart can clobber Amazon on this, but I don't doubt that it is possible. I am just impressed with how much Amazon is changing, or trying to change, the Whole Foods customer base and they are doing it using processes that they already do well (Delivery and Amazon Prime). Moreover, I think they are keyed into the trends that look like the future.

As an aside, I am amazed at these new places that offer to sell you the raw ingredients for a meal that you then cook (everything portioned out in some kind of mistake-proof manner) at, what I am guessing is quite a price. I don't see that as lasting or robust, but it kind of captures a trend in a sub-population.

How has Walmart done with their food sales in general - have they dinged the stand-alone grocery stores? I don't know, but I get the impression (rightly or wrongly) that they have.