Letter: Be careful for what you wish for . . .
To the editor:
Everyone seems really excited locally about Amazon potentially establishing a second office complex in Minnesota.
From where I sit, I was puzzled when I first read that the most successful and powerful online retailer in the country wanted to acquire Whole Foods Market Inc.
That actuation prompted me to wonder if there a bigger and broader concern that we all should be concerned with?
Keep in mind that Amazon reported after making the deal with Whole Foods, they announced price cuts of up to even 43 percent at the Whole Foods locations which are breath-taking to say the least. Especially when you consider that the grocery market is unlike other retailers who have high markup capabilities. In fact, the supermarket business is a low-margin industry, with the average profit margin for supermarkets typically ranging from 1 to 2 percent.
I read in the Star Tribune that the tech industry is really excited the prospect of many new tech jobs that would likely be created in the event that Amazon opens a second office in Minnesota.
As a retired Independent recruiter I can relate to that excitement and opportunity, but I have to ask, at what cost to the consumer these news jobs likely would be acquired at.
By cutting prices by 43 percent for same products that the consumer can buy at CUB and Target, one has to wonder how long these two retailers as well as other national grocery retailers keep their doors open.
Robert L. Rystrom