Amazon just announced the acquisition of Whole Foods for $13.7 billion. If you happen not to be a retailer let me frame this piece of news in another way. It is the same as if Apple were to announce the acquisition of Tesla – derailing the entire car industry overnight – or if Google were to acquire Samsung – cementing Android as the future operating system built into every possible wearable.
But it isn’t just the retail industry which is in shock, the Unilevers, General Mills, and Krafts of the world are equally affected. Overnight Amazon built an express highway from their warehouse to the home of the consumer and elevated home delivery to a next generation. If you’re a brand owner, this move is also likely to skip conventional brands altogether – all in favor for private labels. I mean what would hold Amazon back from elevating all Whole Foods private label brands to a top position online – sidelining all conventional players?
Posted in: Insights