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Is Amazon Realizing the Limitations of their Whole Foods Market Acquisition?

03/07/2019

The Wall Street Journal reports that Amazon is planning to establish a chain of grocery supermarkets independent of Whole Foods Market or the cashier-less Go convenience stores. Recognizing that Whole Foods Market does not compete directly with mainstream chains such as Kroger and Albertsons, Amazon appears intent on establishing a significant presence in retail grocery and has signed leases in urban locations. In all probability they will be eyeing small chains that could be upgraded with appropriate technology after acquisition.

Since the purchase of Whole Foods Market, Amazon has not apparently benefited from potential synergy derived from online sales tacked onto the high-end grocery concept. Amazon has failed to shuck the whole paycheck image and the promise to open new stores has withered.