Amazon and Whole Foods footprints are remarkably similar — Geographic analysis

Xavier Trudeau
Juin 25, 2017

He expects Amazon to put pressure on grocery stores to lower prices.

TheStreet visited three grocery locations in New York's financial district, and of those three, Whole Foods noticeably thrived.

The remarks offered a preview into how e-commerce giant Amazon might turn around the sluggish sales of Whole Foods since announcing on Friday it would buy the company for $13.7 billion, including debt.

Mackey said, "It was truly love at first sight". Mackey had slammed the hedge-fund investors in an interview with Texas Monthly, calling them "greedy bastards" who were only interested in making a quick buck on the sale of the company. There's no better company in the entire world for Whole Foods Market than this company right here. "We just had these big grins on our faces, like, 'These guys are incredible'". "This is gonna be so incredibly wonderful".

The deal comes after Whole Foods has been pressured as a key sales figure has declined. "We're not changing our quality standards", he told his employees. And- these guys are really smart people.

Whole Foods, battered in recent years as conventional retailers muscled into its turf with lower-priced organic products, has actually already begun to change.

"There are no guarantees in life", Mackey said in response to a final question from an audience member to wrap the meeting.

Obviously thinking about their first date together. "Whole Foods is expensive enough". "I think we're gonna see a lotta technology".

Adrienne Anderson, at a Whole Foods in Savannah, Georgia, says she shops at Whole Foods nearly exclusively for meat and fresh produce "because of the quality and selection" and because fruits and vegetables are locally sourced.

"We will be joining a company that's visionary", Mackey said. About a year and a half ago, I dreamed that we merged with Amazon.

What exactly might these innovations be?

Although it has reportedly come with it's learning curves, Amazon Founder Jeff Bezos has shown a willingness to try new things.

In December of 2016, Amazon revealed a high tech grocery concept called Amazon Go, that would offer prepared foods and popular grocery items in a zero-fuss setting.

Whole Foods' retail locations could also help Amazon make last-mile grocery deliveries. "And she said, 'That's insane.'" Mackey said, drawing guffaws from employees at a town hall meeting on Friday. Industry observers have said that Amazon may add a selection of discounted, non-organic food to distance the chain from its "Whole Paycheck" nickname.

To that end, Amazon is encroaching on territory long dominated by the likes of UPS, FedEx and the U.S. Postal Service.

"If anything", she said, "the acquisition will make shopping at Whole Foods more convenient". "I think that where Amazon may add the most value is to speed up the process of perfecting the 365 by Whole Foods model and scaling it quickly thanks to its greater resources". More seriously, he said it was too early to discuss these kinds of details, but highlighted that one of Amazon's core values take Whole Foods is likely to embrace is frugality.

"Very few entities could outbid" Amazon, Short said.

But Mackey also said that "Over time, there could be other formats that evolve that - that might - wouldn't be branded Whole Foods Market, potentially, wouldn't be our standards".

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