Amazon's digital disruption of the food business

27 August, 2017, 01:34 | Author: Franklin Nunez
  • Amazon unveils Prime discounts, Lockers at Whole Foods

Any broad discounts to grocery staples could put additional pressure on area competitors that retain patrons in part due to beating Whole Foods on prices, with Whole Foods having stores in Danbury, Darien, Fairfield, Greenwich, Milford and Westport.

A whole range of Whole Foods products are about to get cheaper thanks to Amazon's acquisition of Whole Foods Market on August 28. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.

The union, which represents grocery workers, said the deal was "a threat to Whole Foods workers and their families". The $14 billion deal has been approved by regulators and will close on Monday. Amazon Lockers will also be placed in some Whole Foods stores, where customers can pick up online orders or place them in lockers for returns. The move sends a clear message to the USA grocery industry-Amazon is ready to begin its foray into the market in much the same fashion.

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The two companies say they'll offer more price cuts and changes in the future, after they integrate their logistics and retail systems.

Amazon will waste no time reshaping its new, 460-store acquisition. Signs at the Westport store this week promoted Whole Foods' delivery services; this week, Stew Leonard Jr. predicted that within five years, 20 percent of the sales rung up at his Stew Leonard's chain will be delivered to customers. "I think what I eat is more important than price, but they do have quality foods here", she said.

In its press release about Amazon's plans to lower Whole Foods' prices, the company was sure to inform investors that these first price cuts are "just the beginning".

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These will include organic bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85 percent lean ground beef, creamy and crunchy almond butter, organic apples, organic rotisserie chicken, organic butter and other items.

Amazon's strategy with Whole Foods is expected to change the competition among US groceries.

It could also pose a threat to other grocers and retailers.

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During the 2016 campaign, he blasted NAFTA as a bad deal for American workers, blaming it for an exodus of U.S.jobs to Mexico. Many smaller US companies have been able to compete and survive by outsourcing production of some components.

But the challenge, some say, will be preserving Whole Foods' high-end image while lowering its prices and making its products widely available.

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