DAGEN: AMAZON WANTS TO GET ITS
100 MILLION PRIME NUMBERS TO BUY
THEIR GROCERIES AT WHOLE FOODS
PROMISING DISCOUNTS THAT THE
TARGET CUT DELIVERY FEES BY MORE
THAN HALF.
GERRI WILLIS HAS MORE ON THIS.
>> THE COMPETITION ENOUGH.
PRIME NUMBERS WILL GET 10% OFF
SOME SALE PRICES AT WHOLE FOODS
ALONG WITH DISCOUNTS AND OTHER
SELECT SELECT THE ITEMS.
THIS WILL START TODAY AND EXTEND
NATIONWIDE THIS SUMMER.
TO GET THE DEALER WANTED TO
DOWNLOAD THE WHOLE FOODS HAVE
BEEN CREATED CODE TO SCAN AT
CHECKOUT OR YOUR PHONE NUMBER TO
YOUR PRIME ACCOUNT AND ENTER IT
AT CHECKOUT.
TARGET WILL CUT ITS DELIVERY FEE
IN HALF STARTING THIS WEEK GOOD
CUSTOMERS PURCHASING BECAUSE
THEIR TARGETS RESTOCKED SERVICES
WILL PAY $2.99 DELIVERY FEE
INSTEAD OF $4.99.
THE CHANGE COMES AT A TIME WHEN
SHOPPERS HAVE GROWN USED TO THE
SPEED AND LET'S TAKE A LOOK.
DRILL DOWN ON THOSE.
TARGET FREE TWO DAY SHIPPING FOR
$35 OR MORE.
GROCERIES DELIVERED USING THE
SHARED SERVICE FORWARD 99 ANNUAL
MEMBERSHIP FEE.
FREE ON PURCHASES OF 35 BUCKS.
NEARLY 60 SEWERS AND CHICAGO,
NEW YORK AND WASHINGTON FOR A
FLAT FEE OF SEVEN BUCKS.
FOR AMAZON, SAME DAY DELIVERY
FREE FOR PRIME NUMBERS IF YOU'RE
A MEMBER OF THE PROGRAM.
$5.99 FOR THOSE WHO ARE NOT IN
CRIME.
TWO DAY DELIVERY IS FREE FOR
PRIME NUMBERS AND FREE FOR THOSE
NOT ON ORDERS OF $25 ON ALL
DIGITAL PRODUCTS.
BUT TARGETS RESTOCKED PROGRAM,
CUSTOMERS CAN BUY PAPER TOWELS
TO COFFEE OR HIS 3000 ITEMS
ONLINE BY 7:00 P.M. ANY WEEKDAY.
THE PURCHASES ARE THEN DROPPED
AT YOUR FRONT DOOR THE NEXT DAY.
DID YOU GET ALL THAT?
THE BIG THING IS TARGET IS
CUTTING PRICES AND MAKING
THEMSELVES COMPETITIVE.
OF COURSE AMAZON LISTED THERE'VE
PRIVATE MEMBERSHIP FEES.
DAGEN: HOW MUCH WILL THESE
DISCOUNTS THE?
>> IT'S ONLY SOME ITEMS IN ITS
ITEMS ALREADY ON SALE.
I KNOW YOU ARE NO BIG FAN OF
WHOLE FOODS AND RECALL AT WHOLE
PAYCHECK TO SUCH A DISASTER.
I DIDN'T SAY DISASTER.
THEY HAD THEIR ISSUES.
>> ONE WHOLE FOODS IN NEW YORK.
>> CHESTER COUNTY TWO, MY
FRIEND.
DAGEN: I DON'T KNOW IF THEY'VE
IMPROVED IT BECAUSE I STOPPED
GOING IN THERE.
THAT IS IMPORTANT.
>> IT AGAIN, IT'S REALLY GOING
TO BE THAT MUCH OF A WINDFALL?
>> TO GET THEIR AMAZON PRIME
CUSTOMERS IN.
TRYING TO GET PEOPLE WHO LIKE TO
BUY ONLINE TO GO TO A
BRICK-AND-MORTAR STORE.
THEY CAN TRANSLATE THEIR ONLINE
CUSTOMERS INTO A RETAIL STORE
CUSTOMER.
DON'T KNOW IF THAT'S GOING TO
HAPPEN OR NOT.
THE VALUE PROPOSITION HAS BEEN
HURT BECAUSE SO MANY OTHER
RETAIL OUTLETS OFFER THE SAME
DEAL AS THEY DO ON ORGANIC
GOODS.
IT'S TOUGH FOR THEM.
AN UPHILL BATTLE.
>> THAT YOU HAVE A TRACK RECORD
OF BEING ABLE TO PUSH PRICES
DOWN.
I CALL THEM THE DEFLATIONARY
DEATH STAR.
THEY ARE KILLING RETAIL BECAUSE
THEY HAVE THE ABILITY TO PUSH IT
DOWN.
THEY ARE NOT ONLY TRYING TO
BRING SHOPPERS INTO THE STORE,
BUT THEY ARE BECOMING THE WEST
END WHERE INSTEAD OF HAVING
ESSENTIALLY LOCATED, THEY ARE
LEVERAGING A WHOLE FOODS STORES
TO DELIVER TO THE HOME THEN I
CAN GET BETTER AND BETTER.
DAGEN: JUST A REMINDER THAT
DEATH STAR COP FOR NOT IN THE
VERY FIRST "STAR WARS" FILM.
>> WHILE THEY AREN'T EVEN THAT
GREAT TO START WITH.
>> WHAT THEY'RE GOING TO
INCREASE VOLUME, AND THEY ARE
COMING AT THE COST OF THE
MARGINS.
>> IT'S A HUGE WIN FOR THE
CONSUMER.
THEY MAKE WHOLE FOODS
AFFORDABLE.
FOR ME TO SHOP THERE WOULD HAVE
TO BE NOT JUST LOWER PRICES,
THAT MAYBE THEY COULD HAVE
BEEN -- TAKE A MORE BROAD VIEW.
>> EITHER WAY, DAKIN HAS GOT
FULL PRESERVATIVES.
BUT AGAIN, YOU'VE BEEN
COMPLETELY CONNED INTO THINKING
IT IS ALL ORGANIC AND
ALL-NATURAL.
YOU CAN FIND PLENTY OF JUNK FOOD
AND A WHOLE FOODS.
>> GOOD.
IT SHOULD BE POINTED OUT THAT
ORGANIC IS NOT HEALTHIER BY
DEFINITION.
I KNOW PEOPLE HAVE COME TO
BELIEVE THAT, BUT THE PUBLIC
HEALTH ACADEMIC INDUSTRY IF YOU
WILL HAVEN'T BEEN ABLE TO USE.
>> IN THE BACK OF MY HEAD WHEN I
HEAR YOU SAY THAT.
I LOVE HOW IT SEGUED.
BY THE WAY, I WANT TO ANSWER ONE
QUESTION.
MOST OVERCROWDED TRADE DOES
INVOLVE AMAZON.
THE MOST OVERCROWDED TRADE.
>> IT SHOULD BE NOTED THIS IS
BANK OF AMERICA SURVEY
INCREDIBLY ACCURATE POINTING
THIS OUT.
THEY CALLED THE SHORT VOLATILITY
TRADE.
THAT BLEW OFF ENTIRELY NOW.
>> I JUST SIT HERE AND LISTEN TO
EVERYBODY AND TRY TO DIGEST IT.