How Will Amazon Change My Whole Foods?

It has more than 400 stores in south of the border.Whole Foods recently overhauled its board and redoubled cost-cutting efforts, seeking to change a high-price image that has tagged it with the nickname “Whole Paycheck”.”Amazon’s entrance in to the grocery market has been multi-pronged to date, including AmazonFresh, AmazonFresh Pickup as well as efforts across CPGcategories with Dash buttons, Subscribe & Save, and Prime Pantry”. Those stores join physical bookstores in Seattle.The startup has “been telling brick-and-mortar stores that Amazon is coming for years”, said the source familiar with the company. Customers would have needed an Amazon account and a smartphone running the Amazon Go app to shop there.Following the announcement of Amazon’s plan to purchase Whole Foods Market, Inc. Under the terms of the deal, Amazon will pay $42 per Whole Foods Market share in cash, according to a statement.”Whole Foods has been slow and clumsy in its ability to take customer data and translate it into meaningful customer communications that can then translate into sales”, he wrote, “but one has to imagine that this is low-hanging (organic) fruit for Amazon. They’ll fix that fast”.Senior retail analyst Walter Loeb wrote in a Forbes piece that while Whole Foods will continue to be operated by chief executive John Mackey out of Austin, he expects Amazon to “automate the whole operation, integrate it into its websites and lower prices”.The Amazon-Whole Foods combination could put even more pressure on those chains and other big grocery sellers.”In any case, the customer will be the victor”, Loeb wrote.Neil Saunders, managing director of the research firm Global Data Retail, said Amazon is likely to push supermarkets and grocery stores to slash prices, which will affect the companies that make and distribute those products.Amazon already offers grocery-delivery services in five markets, but analysts say expansion is tough because its current distribution centers are set up for dry goods, not perishables.Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions.Additionally, Amazon has experimented with lockers for picking up orders. Will Amazon eat them all? “There’s a ton of stuff they can do with this real estate”. It already has the delivery service Amazon Fresh, and physical convenience stores called Amazon Go, which allow shoppers to buy items without waiting in checkout lines. But Whole Foods came under pressure to find a buyer this year after activist investor Jana Partners LLC acquired a stake and began pushing for a deal. “It’ll be interesting to see what [technological innovations] they choose to pull forward into a larger-scale brick-and-mortar environment – which pieces are most resonant for shoppers and consumers”. The entire retail industry is now on notice that disruption is going to reach new levels, which shouldn’t be surprising any time Amazon gets into the picture.