Acquisition Of Whole Foods Could Place Amazon As Clear E-Grocery Market Leader
By Christine Kern, contributing writer
Deal means big things for AmazonFresh, AmazonPantry and other services.
Amazon is buying Whole Foods in a deal worth roughly $13.7 billion, a move that speaks volumes about the future of the rapidly growing e-grocery market. The move falls in line with Amazon’s recent forays into the grocery industry as well as their ever expanding distribution presence.
And new data from Walker Sands reveals this is likely a good investment, with nearly 1 in 5 consumers (19 percent) reporting they’re extremely likely to make an online grocery purchase in the next year, and another 26 percent saying they’re somewhat likely to do so. When you consider that 84 percent of consumers made a purchase on Amazon in the past year, many of which are also using grocery-focused services such as Amazon Pantry (14 percent), AmazonFresh (10 percent), this acquisition of a trusted grocery partner could place Amazon as the clear market leader in e-grocery.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said amazon founder and CEO Jeff Bezos. “Whole Foods Market has bene satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
Under the terms of the deal, Whole Foods Market will continue to operate its stores under the Whole Foods Market brand, and John Mackey will remain as CEO of Whole Foods Market. The transaction is expected to close during the second half of 2017.
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenient, and innovation to our customers,” asserted Mackey.
In an email, Scott Webb, President of Avionos stated, “The recent moves by Amazon and Walmart are a recognition that the path forward for success is centered around providing a compelling experience wherever the consumer wants to transact. Walmart, the leader in traditional physical retail, is recognizing that they need a better experience with the brands and products they are offering, both online and instore. Amazon, the clear leader in the digital experience, is recognizing that there is still a compelling need to have a physical presence where they can support their customers’ full experience needs.”