Why Amazon is Buying Wholefoods?

By admin, 4 August 2017

Amazon’s decision to buy the upscale grocery chain, Wholefoods, evoked mixed reactions and led to widespread speculations on its future impact on the online retail major and the whole retail industry.

It has been a known fact that Amazon has been aggressively pursuing new business opportunities and its interest in breaking into the online grocery retail space isn’t much of a surprise either, but the company’s interest in a high-priced supermarket chain like Wholefoods was quite an unpredictable move.

In his article for Internet Retailer, Moshe Kranc, Chief Technology Officer, Ness Digital Engineering lays down some interesting facts about Amazon’s latest buy, and offers a deeper insight into what the purchase will bring for Amazon – like an entry into the high touch retail format that pretty much eluded it so far.

“You are far more likely to discover a product you didn’t initially intend to buy in a Whole Foods store than on Amazon’s web site. Whole Foods provides Amazon with an entry into high-touch experiential shopping. It also provides a laboratory where Amazon can collect data about this kind of shopping, and perhaps gain insights into how to make online shopping more exploratory and engaging,” notes Moshe.