Credit: Whole Foods Market
Credit: Whole Foods Market

What you need to know about Amazon’s bid for Whole Foods

6 July 2017

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”.

To read the rest of this article you need to sign in:
Don't have an account? Register here


Not a CIPS member? Why not join CIPS to access a full range of benefits, including:

  • Access all areas of the CIPS Knowledge on-line library including tools and templates and Supply Management stories.
  • Enhance your network and get connected to a global community of 120,000 in 150 countries.
  • Stay in touch and up to date through member only events and branch meetings.
  • Annual subscription to Supply Management magazine.
  • 10 per cent discount on all training courses, workshops, seminars and conferences.
  • Up to 15 per cent discount on books from the CIPS book store, including course books and a range of further reading text books.

And much more. Click here to join >

Rotherham, South Yorkshire
London (South), London (Greater)
£49k circa
Historic Royal Palaces
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates