As Amazon starts their $13.7B bid to buy Whole Foods Market, we examine insights from our Deep Global Retail team as to why we should all be sitting up and taking notice, as the merge looks to completely reshape the retail grocery category.
Two Great Shopping experiences:
The synergy between Amazon’s innovation and seamless shopping process, combined with Wholefood’s fantastic human customer experiences means ‘Whole Amazon’ could provide a win all round for consumers - providing the best of online and offline shopping experience all-in-one place.
The Masters of Curated Content:
Whole Amazon could look to capitalise on what Whole Foods already does well, and what has become fundamental in the changing online shopper behaviour today- curated content. Backed by Amazon’s world class personalisation engine, localised and relevant content will be taken to a whole new level.
Logistics Trumps Location:
Thanks to Amazon’s sophisticated distribution, logistics and purchasing power (a nice example being Amazon’s click and collect Lockers), the bricks and mortar operations of Whole Foods would become considerably more efficient and profitable. This means produce would come cheaper, more localised and faster.
Delivery, Grocery’s Last Stand
Made possible by having a broad physical footprint, traditional grocery retailers have looked to buck online retailers by offering fast delivery and click and collect options.
However, with the merger providing access to 460 Whole Foods stores worldwide and access to 32 states in the US (which Amazon currently doesn’t have presence), Whole Amazon would make it harder for traditional grocery retailers to compete on delivery speed alone.
It will be interesting to see how the merger unfolds, but regardless it looks as though the dynamic of the grocery retail space is changing.
If you would like to know more about the future direction of all things retail, please contact Kathryn.Ellis@McCann.com