Back in the 1990s, people thought Jeff Bezos aspired to run an online bookshop. They badly underestimated the scale of his ambition. Today, Amazon sells everything, and offers an array of other services, from cloud computing to TV streaming. In the US it accounts for 43% of online retail sales and 74% of e-book sales; and it is about to become the biggest clothing retailer. Now it has bought Wholefoods and its 400 stores hoping to dominate the food market too. Its monopoly power is growing more alarming by the day, yet the regulators say they can’t intervene because consumers – who benefit from Amazon’s cutthroat pricing – are not being harmed by its dominance. How shortsighted is that? (adapted from an article by John Naughton, The Observer)
This number of stores doesn’t match the 5000 owned by Walmart, but such is the energy and attention to detail of Jeff Bezos that in ten years who is to say that Whole Foods, under Bezos won’t be the most powerful food retailer in the US, and maybe even the UK?
I am a suporter of Amazon, whose delivery service is second to none. However, every time I order from them I involuntarily think to myself, ” You are helping the establishment of the most all-encompassing monopoly the world has maybe ever known”. And then I click “Order”! ( hypocrisy is not unknown to the writer). I have a feeling that, were he alive today, Epicurus would support (honest ) competition and deplore monopolies that usually end in tears, resentment and lousy service. He would, above all, advocate moderation.
Most of our friends love Wholefoods (whose largest store, by the way is in London). They do come up with good products not available elsewhere, but all too often discontinue them or substitute an own- brand of unknown origin. They claim to be a healthfood store and put sugar in their soup, and they are very expensive. So I for one do not bemoan the change, and hope Bezos can broaden the Wholefoods clientele and offer healthy food while he is about it.
Most of our friends love Wholefoods (whose largest store, by the way is in London). They do come up with good products not available elsewhere, but all too often discontinue them or substitute an own- brand of unknown origin. They claim to be a healthfood store and put sugar in their soup, and they are very expensive. So I for one do not bemoan the change, and hope Bezos can broaden the Wholefoods clientele and offer healthy food while he is about it.
I am also a fan of Wholefoods, having visited the branches in both Kensington and Richmond. For British readers, Whole Foods is essentially the American Waitrose, but with a more progressive feel- it emphasises organic and sustainably grown products. I love how unique it is as a store, and the selection of unusual products you can’t get elsewhere.
I wouldn’t worry about Amazon becoming a monopoly. In America, Whole Foods is seen as a premium brand, and it’s liberal reputation limits its appeal. It will never be as popular as Walmart or even Target. In Britain, it certainly has room to expand, but it would face stiff competition from Waitrose and M&S food. It’s also worth noting that Britain is undergoing a period of wage stagnation and relatively high inflation, limiting the appeal of premium food outlets. What I’m worried about is Amazon not paying its employees enough. Hopefully the introduction of a higher minimum wage will counter that, but I can’t be certain.