Amazon buy Whole Foods Market for $13.7 billion

Tinuku ~ Amazon takes over Whole Foods Market for US$13.7 billion. Amazon made a bold expansion into a physical store by buying Whole Foods Market as a platform for online retail radical experiments that can revolutionize the way people buy goods offline. Companies can use hundreds of Whole Foods stores as distribution centers and online orders.

Tinuku Amazon buy Whole Foods Market for $13.7 billion

Amazon has bought Whole Foods as a transformative strategy for retail in general. Whole Foods was established in 1978 has experienced a decrease in sales. Groceries have become a very competitive business with low-cost rivals like Aldi.

The Amazon-Whole Foods collaboration puts more pressure on other chains and food vendors. Walmart, which has the largest food market share in the US, has been trying to lower prices, while Target has struggled to change its grocery business.

Amazon could have built its shopping business without acquisition, but it would cost a lot and expensive. Whole Foods allows Amazon to gain a well-established business that can transform through technological and networking expertise.

Amazon has also tested automation technology at a Seattle convenience store that is currently open only to Amazon employees. Stores use sensors to track stuff when a buyer puts them in a basket or returns them to a shelf.

The delivery of online groceries so far is extremely difficult for any organic food company because of customer concerns about the quality of meat and its production. But if customers know that they are buying the same item as what they would get at a local store, chances are they will try it.

Amazon will also get 20 million members of the Prime loyalty program to pay an additional US$15 per month for AmazonFresh food delivery service. It is likely that higher-income households will tend to buy more expensive brands and discounts.