How will Amazon transform Whole Foods? (The 3:59, Ep. 242)
- Author: Zachary Reyes Jun 26, 2017,
Jun 26, 2017, 4:44
The deal was set in motion when Mackey and fellow executives Jason Buechel, Ken Meyer and David Lannon flew up to Amazon's Seattle headquarters, according to a transcript of a town-hall meeting held Friday with employees.
Concerned Whole Foods shareholders who would like more information about their rights and potential remedies, including those who believe that the proposed transaction is unfair as to price or terms, may contact attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000, email@example.com or firstname.lastname@example.org. Amazon has an obvious ability in e-commerce, but retailers such as Wal-Mart and Target have recently aggressively stepped up their digital efforts.
Amazon has impacted more parts of the US economy as it expands from books, toys and electronics into apparel, groceries and entertainment.
Mackey added that there would be executive changes at Whole Foods but that he didn't think they would be "forced on us" by Amazon. Observers are already pointing out that Whole Foods' 450 stores, which are primarily located in upscale coastal cities that are key Prime markets, can be used as distribution and fulfillment centers for the retail giant, which has been working very hard to reduce the costs of getting products into the hands of customers.
While many of Whole Foods stores are not now setup for drive-in and pickup, adding that capability would create big synergies with Amazon's e-commerce business by reducing last-mile delivery costs, says a Citigroup report published on Tuesday.
How will Amazon transform Whole Foods? 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.
Amazon, meanwhile, isn't "stupid enough" to change Whole Foods' brand, Mackey said at the town hall. Still, much is unknown about how the Amazon takeover will impact Whole Foods, the grocery industry, and grocery shoppers in general.
"We do think our partnership with Amazon is gonna help us do that more skillfully and, hopefully, faster". This could be good news even if you don't shop at Whole Foods.
But other experts see advantages to buying Whole Foods beyond just its gourmet and organic food, and access to the affluent customers who favor it.
Although it has reportedly come with it's learning curves, Amazon Founder Jeff Bezos has shown a willingness to try new things. I don't know if you know that- they were, like, ranked the number-one most innovative company in the entire world.