The deal could change the face of retail supply chain. Here’s all the analysis you need.
Why is Amazon willing to pay nearly $14 billion for American supermarket chain Whole Foods? In The Atlantic magazine, Derek Thompson argues that this opportunistic acquisition is, in part, a large bet on the booming food delivery market a business driven by what the industry calls “customer convenience” or, less euphemistically, “human sloth” which, according to a Euromonitor report, will grow 15 times faster than the US restaurant sector between now and 2020.
The deal is seen, in the media, as marking an inflection point where e-tail becomes the master of retail. The takeover is especially ironic given that John Mackey, CEO and founder of Whole Foods, which has reported declining revenue growth every year since 2012, famously declared that moving into grocery delivery would be “Amazon’s Waterloo”.