Amazon Plans to Purchase Whole Foods

By Rick Patsos

Amazon, one of the world’s leading e-commerce retailers, is making a major move into brick-and-mortar with the planned purchase of Austin based Whole Foods Market. The deal is estimated to be $13.7 billion, or $42 per share, and is expected to close later this year.

“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, convenience and innovation to our customers,” Whole Foods CEO John Mackey said in a statement.

Amazon has already made moves into physical retail this year with AmazonFresh Pickup and Bookstores. Combined, there are less than 20 total locations, and it seems this is more of a test lab than a revenue generator. They plan to reshape the shopping experience with innovations such as no stop checkout,  smart parking lots, and an overall more streamlined shopping experience. With the addition of Whole Foods, Amazon now adds another 431 stores under its umbrella.

Amazon is a data driven company. The physical bookstores show titles based on the shopping data of the people in the surrounding communities. With the addition of these Whole Foods locations, their ability to collect in-store data increases exponentially. Also, Whole Foods is an industry leader in brick-and-mortar retail, so they will bring their expertise to the table. That makes the potential for Amazon, specifically AmazonFresh, to be a major player in the future of grocery.