Amazon’s agreement to purchase Whole Foods Market inserts even larger stress into the grocery and food industries at a time when e-commerce is already dominating retailers. The tech major’s $13.7 Billion acquirement of the niche and upscale grocery chain was defined as a seismic occurrence by industry experts, in spite of comparatively tiny size of Whole Foods.
The agreement encouraged semi-serious posts and jokes on Twitter about a future shopping era with Artificial Intelligence Digital Assistance Alexa of Amazon by substituting cashiers. Keeping jokes aside, the acquirement will mean a serious disturbance, since the e-commerce giant will be obtaining over 450 stores in the U.S., Britain, and Canada in one scoop.
It is also anticipated to speed up current efforts by grocers sell more private label and specialty foods, to make shopping more smartphone-ready, and conquer the hurdles of home delivery of foodstuffs. The strong record by Amazon of keeping costs low adds stress on chains of supermarket that may be obligatory to slash prices with a propose to keep up. That could in return encourage mergers between large food producers that feel forced to bargain with heftier customers. “It is a big contract owing to Amazon and what the company can convey to the market,” said market expert Joe Agnese.
“Amazon is believed to revolutionize and accelerate change, and hence having the attendance of Amazon may result to a quickly moving push into food delivery market and reduced prices.” Experts usually praised the agreement as a smart move by Amazon, but not everyone was giving a round of applause. “Government enforcers of antitrust should obstruct this merger,” claimed market analyst Barry C. Lynn from New America. He alerted that Amazon already puts forth dangerous impact on music and books markets of America, and is a quick consolidating control over other chief flows of ideas and information.”
For now, the hot topic of the era is the acquirement of Whole Foods Market by Amazon. Even though the experts say that this is a smart move, let us wait and watch whether this purchase will be profitable or not for the company.