Online Retail Magnet Amazon Buys Whole Foods. Is it Going to Affect India?

Giant online retailer Amazon has acquired another brand to add to its portfolio. Whole Foods, an American supermarket grocery chain is all set to be taken over by own Amazon. Making its way through a variety of businesses, Amazon is emerging greatly on the global platform. By Jasmine Kaur


Amazon’s $13.7 billion purchase of Whole Foods has turned it into a major player in the US grocery business. The online seller’s acquisition of Whole Food is a first in the grocery industry (it does have its ow  subsidiary (AmazonFresh), a grocery delivery service limited to certain US States, London, Tokyo, and Berlin. The acquisition reflects the message that the brick-and-mortar retail business that pioneered organic, fresh food, and a dominant e-commerce company make a powerful combination.


What it says for the consumers

  • With this venture, Amazon is likely to lower the prices of the groceries, attracting more consumers to indulge in online shopping.
  • Amazon could try to use automation and data analysis to draw more customers to stores while helping Whole Foods cut costs and perhaps prices. Meanwhile, more than 460 Whole Foods stores in the U.S., Canada and the U.K. could be turned into distribution hubs — not just for delivering groceries, but also as pickup centers for online orders.
  • But the Whole Foods loyalists need not worry as its stores will continue to operate under the Whole Foods Market brand and its headquarters will remain in Austin, Texas and John Mackey will stay on as CEO.
  • Some believe that Amazon’s occupation might attract you more to try out grocery-delivery services, which you were hesitant to use earlier.


Does it Affect Indian consumers?

While Whole Foods acquisition is going to bring about a change in the US, there’s something in store for the Indian consumers too. Similar to this takeover, Amazon has entered into an exclusive 60-day deal with Big Basket, an online grocery store operating in India. Hacking such a deal can imply more foreign brands, thus posing a serious threat to the local retailers. No doubt, this will give a boost to India’s stunted supermarkets. But we are yet to see an interesting chain of events unfold, following the deal. It seems Amazon is entering the grocery business with quite a boom.


Exit mobile version