With Whole Foods 400+ stores, the deal will give Amazon a physical brick-and-mortar footprint it’s been lacking. It takes the heat off of Whole Foods, whose stock has taken a beating due to lackluster earnings results.
More importantly, it changes the way we think of grocery shopping in general. Amazon’s Prime Fresh service has had limited success. Without physical stores, it’s not clear how fast Amazon could expand into groceries. Now, what was once the world’s largest online bookstore can offer a hybrid online/in-person service that grocery competitors just can’t match.
How will this change Whole Foods and especially home delivery services like Blue Apron? That’s to be determined. Amazon has allowed acquisitions like Zappos to operate fairly autonomously. But expect Amazon to change everything from pricing to what’s offered for sale at Whole Foods. Look for nonperishable items to be offered online through Amazon. And look for all of this to make life harder for companies like Walmart, Kroger, Safeway, etc.
What’s most interesting about this is that it wasn’t a hookup that most people would have predicted. Yet, when we think about it, we see synergies and all kinds of possibilities.
What kind of out-of-the-box connections and partnerships can your business pursue? Are you thinking beyond the conventional? Are you ready to turn your shopping cart upside down and inside out?
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