Amazon wrecked the mall. Now it’s coming for the grocery store

Amazon wrecked the mall. Now it's coming for the grocery store

‘As Amazon enters the grocery market proper, it will put a lot more pressure on existing grocers, ‘ Neil Saunders, managing director of the research firm Global Data Retail, told the AP. The shares were trading just under that level in early trading, while Amazon’s shares were up 0.9 percent at US$997.41. Its shares closed at $42.68 yesterday, up 29.1 percent. It announced Friday that it’s buying online men’s clothing retailer Bonobos for $310 million, following a string of online acquisitions such as ModCloth and Moosejaw. With Whole Foods, Amazon is getting 456 brick-and-mortar stores in North America and Britain.

That was feeling of Taylor Malooly, 19, a University of Texas student at Whole Foods in Austin, who said a Whole Foods delivery service would have to be fast if he were to try it.

The “implications ripple far beyond the food segment, where dominant players like Walmart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks”, O’Shea said.

“Large grocery stores like Kroger and Albertsons will be especially affected”, said Madeline Hurley, senior analyst at IBISWorld.

Amazon can now answer the question, What are we having for dinner”, he says.

Carmen Clark, 37, a six-year employee at a store in Mount Pleasant, South Carolina, said some workers worry that Amazon-led automation could lead to job cuts.

It has been stated that chief executive Jeff Bezos plans on keeping the extravagant brand image of Whole Foods, for providing premium fresh groceries, intact while slashing down the prices. Note, though, that one of its investors as well as partners is Whole Foods, either shaping Amazon to be a shareholder or Instacart as an acquisition target itself.

“If you can’t make a good margin you can’t reinvest to make a better product”, Motkin said. Every retailer in the market that competes with Whole Foods is going to have to offer their customers similar experience not just in product selection but in availability and timeliness. (NASDAQ:WFM) in an all-cash deal worth $13.7 billion that will also see Amazon absorb Whole Foods’ debt. It has expanded from a book seller into a merchant of almost all consumer products, as well as producing videos.

“This might be an opportunity for consumers who have felt that Whole Foods is inaccessible”, said Lauren Beitelspacher, a marketing professor at Babson College in MA.

While doubters will point to Whole Foods’ revenue stagnation and falling net income, that’s not really the issue.

Amazon was already in the news in India where it’s subsidiary Amazon India was believed to be in talks to buy Big Basket, a news which was neither confirmed nor denied by both the parties.

Convenience. More of our shopping visits are digitally enabled, and this is going to continue to grow.