Amazon announced that it is acquiring Whole Foods. The impact of this purchase is far reaching for retailers, grocers and brands. As marketers, we need to understand what this shift means to the retail landscape and to shopper expectations. Given this news, TPN’s Digital Commerce team has developed thoughts on what happens now and what to do.
WHAT TO EXPECT
Amazon is going to get smart on grocery.
Whole Foods gives Amazon the ability to leverage its knowledge within the grocery channel and a better understanding of how to source local and organic foods.
Amazon will integrate its features at Whole Foods.
Expect Whole Foods to integrate the ability to make transactions through a Prime account similar to the Amazon Go grocery model – making for faster, more seamless experiences.
AmazonFresh will grow.
Whole Foods locations will enable AmazonFresh to take food delivery to the next level, with faster, fresher deliveries taking place in a truly on-demand model.
Prices at Whole Foods will drop.
Many expect this merger will make Whole Foods more affordable. That said, it’s fair to expect prices at grocery stores to drop altogether.
HOW TO PREPARE
Get to Know Amazon.
If food brands haven’t already, it’s crucially important to build relationships with Amazon, get familiar with their ecosystem, and start understanding its numerous paths to purchase.
Get to Know the Amazon shopper.
As stated in TPN’s Shopping in the Flow report from 2016, the retail purchase funnel is gone, and the buy is happening outside of physical stores through mobile devices and other in-home technology like Amazon Alexa. Brands must move to where these purchase take place… before it’s too late.
Don’t wait. It’s happening.
Amazon isn’t waiting for anyone in its efforts to extend its reach across the retail landscape. Getting familiar with the retailer today can only fuel a brand’s success for inevitable retail changes in the future.
SO WHAT’S NEXT?
More change is coming. While Amazon will continue to grow and extend its giant reach across the retail landscape, expect other heavy hitters – like Walmart, Target, and Kroger – to step up to the plate, find ways to evolve, and introduce their own retail innovations.
These are exciting times, and it’s just the beginning. While much of what this merger means is still very much unknown, one thing is certain: More change is coming.
At TPN, we’re ready for it.
Author: Rami Odeh | Digital Commerce Director | firstname.lastname@example.org