Amazon purchased Whole Foods for a total of 13.7 billion dollars on June 16. This acquisition represents a huge step in Amazon’s new approach at creating a grocery empire. Amazon has been trying to kick start their online grocery business for almost a decade but so far have not had much success.
This acquisition of Whole Foods signifies Amazon’s first major step in expanding its grocery sales into the physical world. Amazon has run a few physical stores and has projects such as Amazon Fresh and Amazon Go, but with this purchase of Whole Foods, Amazon gained 460 physical stores, thus taking their physical presence to a whole new level.
This deal with Amazon could be a lifeline for Whole Foods. Recently, they have been struggling with the competition of stores like Costco and Walmart, who have lower prices than Whole Foods, which has been coined “Whole Paycheck” due to their high prices for groceries.