- Amazon recently completed its $14 billion acquisition of Whole Foods.
- Keeping in line with its overall strategy, there have been widespread price cuts on Whole Foods products (see chart).
- Although there are only 500 Whole Foods locations out of 38,000 grocery stores nationwide, many are located in strategically important areas (near affluent cities).
- Amazon’s low price strategy and efficient distribution network could quickly disrupt the grocery industry since profit margins are very slim (1.5% of revenue).
Why Amazon Is Such a Threat to the Grocery Industry
(08/25/2017)
