They call it the “Amazon effect” — the disruption that happens when the Seattle ecommerce behemoth enters a new corner of retail. Somehow, though, the grocery business always seemed immune.
All that ended on June 16, 2017, when Amazon announced its acquisition of Whole Foods Market, a grocer with more than 460 brick-and-mortar stores. The $13.7 billion deal sent shock waves through a sector already struggling with razor-thin margins and cutthroat competition.
In this Executive Insights, we unpack what Amazon’s foray into stores means for the grocery market. We’ll look at what the Whole Foods acquisition reveals about Amazon’s strategies in the grocery industry, how changing consumer preferences are reshaping the grocery landscape and the ways that ecommerce retailers are responding. We’ll also go over some of the implications of these trends for traditional brick-and-mortar grocers.