Amazon’s acquisition of Whole Foods will make Whole Foods more accessible to more consumers. And it will turn them into Amazon customers and advance its bid to become the dominant player in all of retail — the so-called everything store, avers a report in Money CNN.
“The pot of gold at the end of the road for Amazon is groceries,” said an Amazon analyst. “The war for retail will be won in groceries. It’s the largest category of consumer retail, and the largest untapped opportunity for Amazon.”
With lower prices for higher quality goods, Amazon is posing a direct threat to America’s major supermarkets. That market disruption is based not on what Whole Foods is today, but on what it can become.
Whole Foods currently represents less than 2% of the overall grocery market. But under Amazon, those stores will be turned into warehouses that can distribute groceries to homes around the country. Meanwhile, Amazon’s distribution centers can also function as Whole Foods distribution centers.