Amazon Buys Whole Foods To Expand Its Digital Prowess In Retail

Jun 24, 2017 | Commentary

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Amazon recently acquired Whole Foods in a $13.7 billion deal. This gives Amazon a boost in the brick-and-mortar realm of retail. In addition to making money via typical grocery runs, Amazon can earn more by tacking on additional products and services. The Whole Foods shopper is one who goes there for the “retail theater” experience as much as for the food itself. It is a place where customers can sample new foods and enjoy an organic beverage. The Amazon acquisition will undoubtedly enhance Whole Foods' already existing digital footprint. It is predicted that Amazon will continue to expand into brick-and-mortar terrioty.

Key Takeaways:

Amazon will tie its add-on services and others with people's weekly grocery shopping trips
Real-life stores cannot be replaced by online stores for some things like events and samples
Amazon will be combining real-life shopping with the digital experience in multiple ways

“We believe this foreshadows acquisitions to come. Whole Foods only has 450 stores across 42 states, which does open myriad opportunities for Amazon to reach a valuable demographic in their local neighborhood, but it leaves much of the US wide open.”