Amazon Is Coming To A Grocery Store Near You
We’ve all gone to Amazon to browse through the seemingly endless deals the website offers. You start off looking at some new sheets and suddenly you’ve fallen down the rabbit hole and added 10 things to your cart because hey…it’s a good deal! We’ve even checked Amazon while standing in the middle of an actual store, desperately trying to hide our phone so no one sees what we’re doing. The thing we want is staring us right in the face! Spend the extra buck and buy it!
Yes, Amazon has certainly taken over online shopping. But now, it’s taking over brick and mortar shopping too. Not because we’re price checking that face wash on Amazon while standing in the middle of the store, but because Amazon has just bought Whole Foods for a whopping $13.4 billion. That’s right, Amazon is moving into that grocery store game.
And somehow, we’re not really surprised. Sure, the news is a little shocking since Whole Foods is an actual store and Amazon has mostly existed in that magical place we call the Internet, but the grocery business is a $700 to $800 billion industry! Why wouldn’t the retail giant want to jump onboard that band wagon? Plus, that band wagon probably has corn dogs or something.
Obviously a deal like this has benefits for both parties. Amazon has been trying to get into the brick and mortar game, and now they’ve got an established company with 460 stores in the US, Canada, and Britain. For Whole Foods, Amazon provides some pretty deep pockets which will hopefully help them move in a positive direction again.
But what does this all really mean? Well, first of all, let’s address one key thing. It’s not going to be called The Amazon Grocery Store. Whole Foods will be keeping the name, and will operate as a separate division under the giant Amazon umbrella, with the Whole Foods CEO still leading the charge. That certainly makes us feel better because walking into an Amazon store just seems weird, right? There’s also bound to be some benefits for our wallets. It’s no secret that Whole Foods has been known for higher prices, but Amazon is known for just the opposite. This may mean that the kale you buy for your salad could be a little cheaper in the future.
This deal is still fairly new, so it will take some time to see how everything plays out and what this means for both businesses. It’s certainly an interesting acquisition that people will keep an eye on. But for now, tell us - what do you think of this deal?
(Story via NY Times)