It was less than three weeks ago when I wrote, Etail Goes Retail – Amazon’s Opens NYC Bookstore. In that blog I discussed Amazon’s foray into retail bookstores, an interesting brick and mortar venture for a company that is a notorious retail killer. But that announcement pales in comparison to the explosive news on Friday, that Amazon agreed to buy the Whole Foods grocery chain for $13 billion!
Opinions were rampant on the potential reasons and impact of this paradigm shift. Stocks of traditional grocery chains and pharmacies suffered heavy losses during the day, as investors may have feared increased competition and concerns about market disruption. Amazon is now a behemoth with $136 billion in revenues in 2016, dramatically increasing from $10 billion in 2006. During this ramp up, Amazon has left their imprint on everything from shipping, to books, to electronics and online video.
Can Amazon reshape and rebuild retail? They will need to change the perception of Whole Foods, a chain many think offers choices that are too limited at price points that are too high. One thing is certain, it will be interesting to compare and contrast the Whole Foods of today, with Whole Foods a year from now.