This Is Where Whole Foods (Soon, Amazon) Has Stores in the US
This Is Where Whole Foods (Soon, Amazon) Has Stores in the US
Jeff Bezos CEO and Founder of Amazon in Colorado Springs
24 Giugno, 2017, 03:32
Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a stunning move into brick-and-mortar retail that sets the stage for more radical store experimentation and intensified competition with grocery rivals.
These early forays into groceries provide clues for what consumers could expect from a combined Amazon and Whole Foods, a deal expected to close later this year.
Well, not anymore. In one fell swoop, Amazon founder Jeff Bezos has charged into the supermarket business with the US$13.7 billion (S$19 billion) acquisition of Whole Foods last Friday. While Amazon has been building more and more delivery hubs, the Whole Foods deal gives it 456 stores that it can instantly fit into that network, said Josh Olson, analyst with Edward Jones.
AmazonFresh is already experimenting with a "click and collect" system: Shoppers buy groceries online, then pick them up in person.
"They're greedy bastards, and they're putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods", Mackey told Texas Monthly in a profile published this week".
Amazonsays in a statement that it has "no plans to use the technology developed for Amazon Go to automate the jobs of cashiers at Whole Foods".
"The first thing Amazon is going to do in this acquisition is to remove all those third party vendor services". Whole Foods will keep operating stores under its name.
Amazon is already nearly dominating retail - the company's market share of the USA retail sector a year ago was estimated at 34 percent, while Walmart came second with 5 percent, according to Needham & Company's research in April.
Whole Grocer, which was founded in 1978, would continue to operate under its existing brand.
Amazon already offers a home delivery service for groceries in certain markets. Whole Foods doesn't have a similar footprint but it is popular in this more affluent areas that Amazon likes. The deal now gives Amazon control of those 431 stores, almost all of which are in neighborhoods that are more affluent and younger than America as a whole.
And while department stores, electronics chains and other retail sectors have been closing stores, the number of grocery stores has continued to grow.
In 2016 alone, Whole Foods had sales of $16 billion across its more than 460 stores in the United States, Canada and the United Kingdom. That made Instacart an exclusive partner for Whole Foods' perishable business.
What does this mean for Whole Foods prices? Perhaps one day Whole Foods will even shed its derisive nickname: Whole Paycheck.
And shoppers are a picky bunch, saying they would be looking for the best prices, good quality and convenience when it comes to online food delivery.
In contrast, Amazon shares gained 2.4 percent and Whole Foods went up 29.1 percent on the S&P 500.
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