Okay so this caught most of the industry off their feet, with Amazon announcing they are getting into bricks’n’mortar business big time by buying a Whole Foods, the horrendously expensive supermarket.
With all the speculation on them buying Slack for $9B yesterday, this one makes far more sense. Though, what will they do with it? Whole Foods is a high end grocery outlet (often referred to as Whole Check) which does fly in the face of Amazon’s ideal of competing on price. This definitely sends a shot across the bow of Walmart.
Let us observe what Amazon does with this property.
Amazon said on Friday that it had agreed to buy the upscale supermarket chain Whole Foods for $13.4 billion, in the online retailer’s latest push into the grocery business.
via Amazon to Buy Whole Foods in $13.4 Billion Deal – The New York Times