Posted on Jun 19, 2017
Amazon rings up big changes in the food business - Big Business - WORLD
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https://world.wng.org/content/amazon_rings_up_big_changes_in_the_food_business
I was intrigued to see Amazon moving to buy a controlling interest in upscale grocer Whole Foods. Whole Foods would retain the name but Amazon would be able to break into the upscale food distribution market to get food to people who don't want to or have trouble going grocery shopping. I don't think it will be like the Jetsons yet but I think this is a smart move for Amazon.
Image: Whole Foods market in Oklahoma City; Jetsons what-you-can-learn-from-the-jetsons-about-home-automation-image
"Amazon rings up big changes in the food business
by Mary Reichard
Posted 6/19/17, 11:44 am
Amazon announced late last week it would spend $13.7 billion to buy upscale grocer Whole Foods, almost 20 percent more than the company is worth right now. Two factors made Whole Foods ripe for purchase: First, it’s been suffering from falling sales. Second, an activist Whole Foods shareholder has been pressuring the board to sell. The move could create a sea-change in the way Americans buy groceries. Prodded by Amazon, a great deal of purchasing has migrated online. By and large, though, supermarket spending has not. Retail analyst Ken Perkins says he doesn’t expect the Amazon-Whole Foods deal initially to dent Walmart’s more rural business. But it and other grocers would do well to pay attention and start getting into the rapidly growing delivery business—something Amazon has had its eye on for a while. “They've been trying to get into the grocery business for some time, given the frequency of shopping that takes place in the grocery space, far more trips than your other traditional retail segments, and this gives them a large footprint of roughly 460 stores to get closer to the customer and really expand that delivery business,” Perkins said. John Mackey will remain Whole Foods’ CEO. He says in a statement that the deal will maximize shareholder value and provide higher quality and convenience to customers."
I was intrigued to see Amazon moving to buy a controlling interest in upscale grocer Whole Foods. Whole Foods would retain the name but Amazon would be able to break into the upscale food distribution market to get food to people who don't want to or have trouble going grocery shopping. I don't think it will be like the Jetsons yet but I think this is a smart move for Amazon.
Image: Whole Foods market in Oklahoma City; Jetsons what-you-can-learn-from-the-jetsons-about-home-automation-image
"Amazon rings up big changes in the food business
by Mary Reichard
Posted 6/19/17, 11:44 am
Amazon announced late last week it would spend $13.7 billion to buy upscale grocer Whole Foods, almost 20 percent more than the company is worth right now. Two factors made Whole Foods ripe for purchase: First, it’s been suffering from falling sales. Second, an activist Whole Foods shareholder has been pressuring the board to sell. The move could create a sea-change in the way Americans buy groceries. Prodded by Amazon, a great deal of purchasing has migrated online. By and large, though, supermarket spending has not. Retail analyst Ken Perkins says he doesn’t expect the Amazon-Whole Foods deal initially to dent Walmart’s more rural business. But it and other grocers would do well to pay attention and start getting into the rapidly growing delivery business—something Amazon has had its eye on for a while. “They've been trying to get into the grocery business for some time, given the frequency of shopping that takes place in the grocery space, far more trips than your other traditional retail segments, and this gives them a large footprint of roughly 460 stores to get closer to the customer and really expand that delivery business,” Perkins said. John Mackey will remain Whole Foods’ CEO. He says in a statement that the deal will maximize shareholder value and provide higher quality and convenience to customers."
Amazon
Shopping
Food/Chow
Business
Edited >1 y ago
Posted >1 y ago
Responses: 3
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Lots of talk about how will business change in the next 50 years. Your great grand kids will wonder what you mean when you say you go to the grocery store to pick up some food.... "Old people seem strange...." Evolution.
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LTC Stephen F. I think this is a very interesting move on the part of Amazon. I think the other retailers like Krogers, Walmart, Target, etc. should be concerned in my opinion.
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LTC Stephen F.
I concur with you that Krogers, Walmart, Target, etc. should have cause for concern and perhaps they should consider repositioning themselves COL Mikel J. Burroughs
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