The American Grocery Industry Shake Down & The Power Of Your Food Dollar

The American grocery industry is getting shredded. Amazon’s 13.7 Billion dollar purchase of Whole Foods has the other players in the grocery business paying close attention and possibly even shaking in their boots. There is a tremendous amount of upheaval currently in the grocery industry. The big boys like Kroger and Walmart now have a colossal bricks and clicks competitor breathing down their backs. Further, the Germans are coming and also expanding on the U.S. grocery store turf.  Aldi is opening up 900 new stores over the next five years and Lidl is opening 100 new stores during the next year.

 

"Amazon will need to use their fine-tuned business expertise and also chop, chop, chop prices by a wide margin for the average person to shop at Whole Foods."

 

Whole Foods is a fantastic place to shop if a person is into organics and premium food items. However, the prices on many of the items are out of this world. Decades ago, I was in the produce business and I have a soft spot for fresh organic fruits and vegetables, so I do occasionally shop at the store to purchase these items. Amazon will need to use their fine-tuned business expertise and also chop, chop, chop prices by a wide margin for the average person to shop at Whole Foods.

Here in Florida, we have Publix, which is a well run grocery store. I have noticed over the last year, Publix seems to be giving more of their buy one get one free specials since Walmart and Aldi have built brand new stores within a couple miles of the two Publix stores in my area.  Aldi is an interesting concept. The store is a place to visit each week for the low cost specials that are much cheaper than even Walmart. Aldi does not have a wide selection of groceries like a fully stocked store such as Publix.

Bottom line, the increased smoking competition in the grocery industry is great for the American consumer. Food prices look like they will continue to go down for at least the next couple of years. In the meantime, the grocery industry will continue to feel the pain.

 


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