Amazon Buys Whole Foods Market; Brings Disruption To The U.S. Grocery Sector: Intensifies Competition With Mal-Mart
Amazon just made its latest business venture as the company just bought and acquired the whole foods market. With this, it intensifies its competition with its arch rival Wal-Mart and also disrupts the 4700 billion U.S. grocery sectors.
It can be recalled that last year, Wal-Mart acquired Jet.com which is an online retailer. Because of this move by the biggest grocery chain in the U.S., it ceded an e-commerce leadership to Amazon and the competition started.
Just last Friday, Huffington Post claimed that Amazon acquired the grocery chain Whole Foods Market Inc. With the decision of this largest e-commerce company, its intention to take on Wal-Mart in the said competition was made known.
Because of the latest acquisitions from Wal-Mart last year and now Amazon, it was made clear that traditional retail is no longer different from e-commerce. Moreover, consumers will no longer tell that e-commerce is better than the traditional retail as the two are now considered best.
Further, apart from intensifying competition with Wal-Mart, Amazon's acquisition with Whole Foods Market also disrupted the $700 billion worth of U.S. grocery sector. Through the years, the grocery sector remains to be the traditional aspect of retailing and that this usually involves price war.
With Amazon's acquisition of Whole Foods Market, the e-commerce company needs to learn how to compete with 4,700 stores of Wal-Mart. The company must also try to lessen the high price of the products offered at Whole Foods Market.
For Wal-Mart, USA Today reported that it already cut the prices of its grocery items in the past which only marked the company's readiness of the retail competition. Besides, the consumers also noticed that the largest grocery chain improved when it comes to the quality of their products most especially their meat and modernized its facilities and services.
Moreover, it was reported that even if Amazon acquired Whole Foods Market, Wal-Mart did not change its game plan. Some industry analysts even shared that the e-commerce company will find it hard to utilize Whole Foods in order to take some Wal-Mart customers.