- After decade-long online grocery struggles, Amazon acquired Whole Foods last June ($13.7 billion).
- While annual US grocery sales total $800 billion, groceries only account for 2% of online retail sales.
- Industry-wide struggles derive from delivery costs (customers unwilling to pay), keeping food fresh, and customers distrust of fresh food suppliers.
- Relying on the trusted Whole Foods brand and close-by (store) inventory, Amazon could change image and economics of grocery delivery.
- Following its longtime business model, Amazon will probably withstand losses to take market share away from competitors.
