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Compare And Contrast Amazon And Whole Foods

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Amazon.com Inc. and Whole Foods Market Inc. are both known for revolutionizing the way customers experience grocery shopping. Whole Foods has focused on providing customers with high-quality brands and organic choices. Amazon's approach focuses on adding convenience to the shopping experience by allowing customers to shop from home. Soon the two grocery giants will combine their powers as Amazon acquires Whole Foods.

Amazon is acquiring the grocer, including its debt, for the price of $13.7 billion. While Whole Foods CEO John Mackey assured Whole Foods employees that Amazon would never be "stupid enough" to change the chain's format of offering only the very best, not everyone agrees. Amazon shoppers are known to be frugal, and Whole Foods' impeccable standards have earned them both an excellent reputation and …show more content…

Slumping sales at Whole Foods make the need to do so clear. The desire to offer convenience and lower prices could ultimately lead to the formation of an entirely new brand. Mackey concedes this point, admitting that "Over time, there could be other formats that evolve that ... wouldn't be [to] our standards."

If Amazon is banking on the convenience of online grocery shopping to make its acquisition successful, analysts claim the retailer may be facing an uphill battle. Although online grocery services do exist, including Amazon's own AmazonFresh, customers aren't rushing to embrace the idea. While some enjoy the convenience, others are hesitant to allow an unknown stranger to select their produce and other food items.

Concerns also abound about Amazon's ability to manage Whole Foods' 431 brick-and-mortar locations. Though Amazon manages several warehouse and distribution centers, the company doesn't operate retail stores. Managing so many locations could prove a challenge for the

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