The Amazon buyout of Whole Foods. The Amazon Whole Foods buyout may just shake up the grocery industry and force Walmart to double check itself.
Amazon has acquired Whole Foods in a record-setting $13.7 billion deal. It was also granted a patent for future technology that would prevent brick-and-mortar shoppers from online price checking. (Amazon founder and CEO Jeffrey P. Bezos owns The Washington Post). (Jhaan Elker/The Washington Post)
The Amazon buyout of Whole Foods may just change the landmark of the grocery industry. More than 460 Whole Foods stores in the U.S., Canada and the U.K. could be turned into distribution hubs — not just for delivering groceries, but also as pickup centers for online orders. WalMart has concentrated on strengthening its e-commerce in its grocery sections and its stores as a whole. If Amazon becomes the one-stop for everything the other big grocers such as Krogers, Sav-A-Lot, Costco, Target and possibly Aldi may be in a run for their money.
Will the Amazon buyout of Whole Foods change the shopping experience of the Whole Foods customers? Amazon will have control of over 400 stores. Walking into a Whole Foods store will look different ten years from now. There will be a lot of repurposing the brick and mortar stores. Like other upscale grocery stores Whole Foods may offer a combination of grocery stores and restaurants.
So what’s in it for Amazon? There is the opportunity to gain more of the millenniums and customers that are too busy to shop for their own groceries. They’re also in the position to grab a hold of those tech savvy shoppers that love to buy anything and everything online.
David J Livingston, owner of DJL Research, which provides market research and competitive intelligence for the grocery industry says, “I think competitors like Sprouts, The Fresh Market. Fresh Thyme, Earth Fare and Natural Grocer are totally screwed.