The above is totally NOT how things went down but it’s an amusing thought in the midst of the news that broke today about Amazon acquiring Whole Foods for 13.7 Billion dollars.
The news that Amazon is making this big of a move into Brick and Mortar has the grocery and retail world stunned and worried about what the future holds.
“This is an earthquake rattling through the grocery sector as well as the retail world. We can only imagine the technological innovation that Amazon will bring to the purchasing experience for the consumer,” Mark Hamrick, senior economic analyst at Bankrate.com, said in an email Friday. “Now, we can see in hindsight that its recent dithering around the brick-and-mortar experience, as an experiment, was only a rumbling of the seismic event in the offing.”
Amazon’s “Amazon Fresh” offers delivery in a few key cities, (including Denver now, which makes me super happy) but I have a feeling that after they get Whole foods in the fold the locations that they deliver to are going to increase exponentially. The retail footprint that they just acquired in one fell swoop is rather impressive, especially for a company that so rarely goes out and makes large acquisitions like this.
The stock market shows the immediate reaction of the sector as one of overall fear. Just counting the twenty biggest losers in the retail and food categories from the S&P 500 the market cap loss was $37.7 billion Friday. Meanwhile, Amazon stock went up more than 3% for a market cap gain on the day of 14.5 Billion which has effectively made their purchase profitable already.
As we move forward it’s going to be interesting seeing how Amazon handles this move into Brick and Mortar – but I think it’s going to be even more interesting seeing how other retailers respond to this development.
Go Ship Some Stuff!