Days after Amazon announced a $13.7 billion agreement to acquire Whole Foods Market, the grocer's CEO, John Mackey, suggested it might spin off a new brand of stores that veers from the grocer's traditional operating model and core customers.
Amazon, which is now focused on food delivery following the Whole Foods deal, could leverage GrubHub's delivery infrastructure in its grocery-delivery efforts, the analyst noted.
According to Deutsche Bank analyst Paul Trussell, "The Whole Foods Market acquisition represents a game changer with Costco's competitive moat in grocery under greater threat while its digital platform lags peers, putting membership renewal at risk for decline".
Beyond the romantic metaphor, Mackey also said the companies discussed what they could do together, though he could not share those plans until the transaction closed. Through Whole Foods, Amazon would gain a national store footprint in the United States along with a presence in Canada and the U.K, with over 460 stores in total.
Peter Belanger of Newington, Connecticut, who was shopping at a Whole Foods in West Hartford, said he didn't think he'd be interested in groceries online.
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Human Rights Watch also said that workers were hesitant to speak about abuses, fearing reprisals from their employers. Petersburg, Sochi and Kazan , reports Tass news agency.
"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", Mackey explained.
Mackey's excitement was met with applause from the crowd of Whole Foods employees. That might not be the case if Whole Foods was bought by another grocery chain. Amazon's Worldwide Consumer chief, Jeff Wilke, said at the town hall that Whole Foods' healthier options helped change how people think about food.
"Taking a step back in the sector at large, we continue to believe investors will have more defense versus Amazon's domination if they follow our Super Stock theory". Still, much is unknown about how the Amazon takeover will impact Whole Foods, the grocery industry, and grocery shoppers in general. Jana Partners announced in April that it took one. "Whole Foods is our main competitor", said Bustamante. Amazon is buying Whole Foods in a stunning move that gives it hundreds of stores across the United States, a brand-new laboratory for radical retail experiments that could revolutionise the way people buy groceries.
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. This in contrast to Amazon requiring a paid annual membership in Prime, which offers a similar shipping service. 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.
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