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Amazon's purchase of Whole Foods 'bought a distribution network,' expert says

20 Juin 2017

Meanwhile, in a letter to its customers, Whole Foods Market, Inc.

"We want to assure you that Amazon shares Whole Foods Market's deep commitment to quality and customer service".

"For the most part, it's too expensive for me to do all may shopping there", said Mary Funari, a Whole Foods shopper.

In Whole Foods, Amazon is acquiring a company that has recently come under pressure from investors for its lagging performance. "You have to pick and choose what you buy".

Whole Foods Market was founded in 1978 and as organic food became all the rage, so did Whole Foods.

ALINA SELYUKH, BYLINE: It's lunch hour, and people are dipping in and out of a Whole Foods store in Washington, D.C. This particular shop has only been open for three months, but the chain's brand has had nearly 40 years to grow.

"They're very different entities", Phan said.

The acquisition stands as a huge boost for Amazon's strategy to integrate the brick-and-mortar model into its business. However, Whole Foods has only 431 stores against an estimated national total of over 38,441 grocery store locations.

"I don't know if they do deliveries", she said, referring to Whole Foods.

That could help Amazon cut shipping costs and give the company opportunities to sell even more products once in the store. Cuatrecasas said Amazon's acquisition will set a precedent that other online companies are likely to follow. Mr Bezos is known for making unconventional decisions and having big ambitions, and this could mean a more frontal assault on Walmart - a face-off between the old and the new dominant forces in the retail world.

The deal further shows Amazon's willingness to take on Bricks and Mortar (B&M) outlets. "The impact could be vast and generational".

Amazon Go doesn't employ robots to stock shelves - at least not yet.

The Whole Foods in Seattle South Lake Union neighborhood, just steps away from Amazon's downtown Seattle headquarters.

Yet the prospect of Amazon knowing more about San Jose's Dave Dineen, 55, who works as a dog walker, didn't faze him. The stores could teach cooking skills, hold classes and educate about food. "I don't think we'd be interested. It's the new era of market research".

However, Wal-Mart's shares fell 6.5 percent to $73.78 in morning trading after Amazon said it would buy upmarket grocer Whole Foods Market in a $13.7 billion deal. Whole Foods was, however, costlier in 1992 as compared to today (keep the times in check) and it has been reducing the prices to keep the sales in check. Firstly, don't forget that Whole Foods is a pretty trendy and high-end outlet with an organic focus. "The strategic reasons are that Amazon can put the other bidder out of business, and Whole Foods' investment in delivery creates an instant offense against Amazon Fresh delivery".

"It is hard to say what Amazon's online strategy will be for Whole Foods", she said.

Amazon's purchase of Whole Foods 'bought a distribution network,' expert says