Will The Whole Foods Deal Help Amazon To Gain More Traction In The Grocery Market?

in #market3 years ago (edited)


Next week is the annual Amazon Prime Day, on July 11th, but they will be starting their sales a few days early. It’s also expected that many other retailers are also going to be offering their own special deals to try and compete with Amazon.

This will be the third year in a row that Amazon has held the Prime Day celebration.


This year, the company is allegedly gearing up to introduce customers to some grocery offerings and trying to get more consumers interested in ordering their food online.

People are increasingly getting used to purchasing many things online, everything from phones, clothing, household items, musical instruments, grills, tools, sports equipment, jewelry, and more. But where the crowd has been slow to start shopping is with online grocery options. The majority of folks still just want to go to the store in person to get their food, rather than buy it online.

But maybe, after doing their deal with Whole Foods, Amazon is going to be able to change that. It’s expected that they will be using this Prime Day occasion to highlight their abundance of grocery offerings.

Their competitive grocery offers and quality service via fast shipping options etc, they hope are going to be enough to entice people to start to buy their food online; through the Prime program.

This Prime Day also won’t just be about groceries, as they’ve got deals going on for a variety of different items on the site.

Where Most Go Shopping For Food

For US shoppers, the majority today are doing their grocery shopping at Walmart, which is estimated to account for about 14 percent of the overall US grocery market share last year.

Some of the more popular locations to buy food for consumers in the US after Walmart, would be places like Kroger, Albertsons, Costco, Target, and HEB.


When it comes to grocery sales in 2016, Amazon only accounted for 0.19 percent and Whole Foods accounted for about 1.21 percent. Amazon still has a long way to go if they want to really compete with Walmart and the others who have a larger share of the grocery consumer market.

It’s estimated that over the next several years, that the Amazon/Whole Foods deal is going to contribute to a significant disruption in the grocery market.


banner thanks to @son-of-satire

Pics:
Whole Foods via Fortune
Amazon
Altavia

Sources:
http://www.cnbc.com/2017/07/08/amazons-prime-day-deals-luring-shoppers-to-its-grocery-department.html
http://fortune.com/2017/07/07/amazon-whole-foods-deal-timeline/
http://www.9news.com/money/consumer/ways-to-save/the-big-amazon-prime-day-deals-48-hours-early/455256738
https://www.forbes.com/sites/annabelacton/2017/07/06/the-future-of-grocery-shopping-what-the-amazon-wholefoods-merger-means-for-supermarkets/#18490a6c591c
http://fortune.com/2015/10/14/whole-foods-retail-software/
http://www.dividend.com/news/2017/07/06/what-amazon-acquisition-of-whole-foods-means-for-grocery-stores/

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Can i buy things like laptop on amazon?

I dont see why not, but might not have a discount.

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yes.

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Bye Bye Walmart, hello Amazon.

It's unbelievable....this giant is just taking over. Largest online shop, one of the biggest cloud services, massive fleet of planes and delivery vehicles, immense warehouses, largest online bookstore, the list just goes on...

I think it will definitely increase there grocery sales but the question is will it be enough to justify the cost of whole foods.

Amazon will be playing a long game and can afford to make losses for years if they see light at the end of the tunnel. Should also be remembered that in retail it is normal for some of your products to operate at a loss for example fruit and veg in a supermarket they sell it cheaply just to get people in the door and once they are in there they buy other more expensive things that have higher Mark ups. You could see Amazon doing something similar get people to come online daily to buy groceries and they will also pick up other high end items while they are there.

Its happening right here in the Silicon Valley, few of my clients in my sunnyvale location of one of my gyms work at Amazon, and they said the plan is to acquire Whole foods, then go right into grocery, and implement the no cashier, maybe a manager on site, and security guard and you walk in grab what you need and walk out and all charged to your phone/card. Crazy!

Haha, perfect!

Since one percenters own almost 99% of the wealth you won't find Oprah in whole foods shopping. The affluent which is growing exponentially will quickly learn to simply call Whole Foods and have everything delivered to their door. They are rich and can't be bothered shopping for food while they could be out pricing helicopters, yachts and evening gowns.

Jeff Bezos is happy to deliver it all to their door.

This paints the wealthy in a very negative manor. Why are they evil for making money and paying for services? These services creates new jobs for other people. Oprah as you put it will probably rarely if ever go shopping. So she most likely hires staff to do the shopping, usually house keeping or household managers. I don't see too many of these people online shopping, even if it's Wholefoods. They still need someone at home to put it all away and cook it.

Its something Ive thought of trying bought never pulled the trigger. I might just take a look and see what kind of deals they have, maybe Ill order my first food online lol

We are getting Amazon in Australia soon, local retailers are starting to panic, there are estimations that the will gobble up to 30% of retail sales. Going to be interesting to see what happens here. Thanks for sharing cheers.

I use Amazon on a regular basis order all sorts of stuff from cameras to travelgear and even cosmetics. Living in the Netherlands we can only order at Amazon Germany or Amazon US. Since Amazon Germany is much closer and thus faster delivery this is the go to for me. Also in Germany many things are cheaper than in the Netherlands. I wonder if they will only unroll the groceries department in the US because I have not seen in on the German Amazon. Also in the Netherlands we have many supermarkets doing the internet thing so I think for here Amazon might not have a big succes. Is there already another party in the US who is doing groceries home delivery besides Amazon?

Im really hoping this deal lowers the cost of groceries at whole foods. i sort of doubt it but im still hopeful. amazon was already headed the grocery direction and whole foods has been on the market for a while so in a way it shouldnt have been so surprising.

in the future i imagine when you order your groceries online theyll jus tbe delivered same day if before a certain time. They already do this in some cities and they are constantly building new fulfillment centers to reach all areas of the US faster. This coupled with their expanding shipping fleet (trucks and now planes) i dont imagine it will take too long for it to be normal to get groceries delivered.

my local grocery store is kroger, who just came out with their "clicklist". Basically buuy what you want online and them park in the designated parking spaces and they bring your groceries out to you. From the looks of it, it has been very successful, and i can understand why it would be appealing to people.

I'll tell you what we just got a new food delivery iPad specifically for Amazon at my restaurant. I guess Amazon does food delivery from restaurants now........ they are taking over the world.

I think Amazon will try to push the online grocery shopping at some point. And people will get into it eventually. because it will become easier to shop this way.
What's easier? To go on the market, select your groceries and get back home or to just browse what you want and click, place your order and it's at your door in one hour?

I love Whole Foods.

Amazon -lead the way sales will be done in the coming years

I'm a bit conflicted on what I think of this deal. Personally I always like Whole Foods and I've been a fan of Amazon for a long time, but I don't like when companies start getting so big that they influence the entire economy when they make decisions. This is really making me think of Walmart. Walmart now has expanded to the point that it owns entire shipping fleets, productions facilities, food production and manufacturing plants, honestly Walmart has it's hands in almost everything including money transfer and deals with tax services. The bigger companies get the more at risk of needing a bailout they will be if they ever collapse. I'll hope for the best, but I hope we don't end up with another Walmart situation of vastly underpaid workers with no insurance and no benefits.

we likes competition :)

i used to work for amazon in a warehouse, i wouldnt say i was underpaid and the insurance isnt bad, i work in manufacturing now and get paid significantly more but my insurance is almost useless. But theres a gap between amazon warehouse workers, software engineers, and customer service, along with the other varying fields. I think there is an overall dissatisfaction of employee treatment though, there has been countless articles written about it and i dont doubt what any of them say.
as far as walmart goes, im not real sure, but from what i hear they are trying to turn themselves around from that minimum wage, crap starter job image that they have. I know people in my town are getting paid decent wages and good benefits. I did read an article a while back about walmart getting huge tatx deductions simply for employing people at minimum wage, making them more profitable overall, at the expense of the employees.

I worked for Walmart like 12 years ago, so hopefully they have changed. I just don't want to see Amazon follow in their footsteps.

I too consider this to be a big concern. It's coming down to two behemoths---Amazon vs. Walmart. Both companies have very bad track records for how they treat employees. Amazon prefers robots to humans anyway. To compete with Amazon, Walmart would also have to get rid of a lot of those pesky human employees---they cost too much don't cha' know

I am glad that Amazon is improving and innovating how it services people for their convenience since not all people like me can be able to walk to the grocery physically.

Will drones be delivering food to your front door? Is that asking too much?

Amazon is doing great @doitvoluntarily , combine this deal plus its online dominance, its future is bright. But I rather invest in steem

I still wait from them to implement bitcoin payments. :D

Online shopping at least prevents those torpedoes from people at the door of shopping centers

It will make the surrounding community happy.
thanks for sharing
Interesting post
If there is time, I will shop there
Visit also my post might be interesting

@DoItVoluntarily Wondering if Amazon will accept Food Stamps because there are about 56 million in the USA and more likely a person on Food Stamps may not have transportation to go to a grocery store... this could be a huge incentive for them to buy groceries online AND have them delivered.

Thanks for all the details on this merger and time will tell how successful Amazon will be with their latest endeavor.

Have a Great Weekend !!

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I like but unfortuently Amazon do not support my country

Yes I'm from Myanmar

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Amazon is taking over so strong...

I'm really excited what they're offering these days :)) resteeme

Before, I did not use Amazon. But when I could not find the book, I used this site. Now only there and I buy. Amazon is the best !!!

I hear that a lot of stores in the US are doing curbside shopping now. Here in Malaysia, grocery stores partner with delivery services to bring them right to your door! I think more stores in the US will have to develop a similar model if they're going to keep up with online shopping giants like Amazon.

Wow, interesting. I posted about the recent deal between Amazon and Whole Foods recently too, but I had not thought about how this would impact Walmart. And I have to say, I hope it does, in a big way. Great article!

That is why I love amazon shopping . It always rains deals.

Amazon is doing great! I loved it

I hope I can start ordering a lot of Whole Foods Items on Amazon Prime soon. I'm sure I can't get fresh produce but at least everything else. I'm just not into shopping at brick and mortar stores all that often. Thanks for sharing this, @doitvoluntarily

Wow Amazone is dooing cool decesation 🍻
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Interesting to read, thanks for sharing! #keepsteemin

If only they would deliver in Cambodia :(

I'm not sure what to think about this deal, I like both companies individually but curious as to how they will work together. Only time will tell I recon.

Shopping online products is very convenient.
The main thing is fast and high-quality delivery

Very nice, Will be looking forward to your posts.

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I'm a frequent user of Amazon, but still hesitate when it comes to food. I mean, shouldn't we see, hold, smell before we buy fruit? I don't know. But then again, I used to be hesitant about e-books before I became addicted to Kindle. ;)