Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like?

Bloomberg on the implications of the Whole Foods Amazon deal for the US:

For Amazon, the deal is more about getting a distribution network for groceries, said Michael Pachter, an analyst at Wedbush Securities Inc. It has spent years trying to break into delivering groceries, but hasn’t been as successful as in other categories.

Amazon previously contemplated a takeover of Whole Foods last fall, but it didn’t pursue a deal, a person with knowledge of the situation has said. The e-commerce company revisited the idea after Jana stepped in.

“Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage,” Pachter said. “I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get 5-minute delivery.”

Nicholas Thompson, editor at Wired:

Internationally though, the Whole Foods deal raises the question what Amazon’s grocery strategy outside the US will be like in the future. More, local acquisitions? And, more broadly, how internationally is Amazon seeing itself? As Benedict Evans, industry analyst at VC firm a16z, says:

Needless to say, Whole Foods will be Amazon’s biggest acquisition yet.

More on this topic:

6 comments

  1. […] as said before, buying Whole Foods provides Amazon outside the US with nothing. This is purely a US story, for now. ​ ​More on this topic: ​ ​Post Whole Foods, What Will […]

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  2. […] Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like? […]

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  3. […] ​This is the really big picture to keep in mind in here. We are now in a phase where the change in retail is starting to have effects on brands. ​ ​Once the large FMCG brand conglomerates start to adapt -not by forming a consortium, but by changing the products themselves-, the already fast pace will accelerate again. (Like a flywheel on the industry level.) ​ ​More on this topic: ​ ​* What Amazon Go Will Look Like in an Amazon Flex World ​* Analysis: Whole Foods in an Amazon Go/Flex/Fresh World ​* From Alibaba to Instacart: The Most Insightful Reactions to the Whole Foods Amazon Deal * ​Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like? […]

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  4. […] enough on its hands transforming this US store chain alone. The international approach for Amazon is still the biggest question here. Will Amazon management go on a shopping spree for European grocery chains this year or the next […]

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  5. […] Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like? […]

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  6. […] Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like? […]

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