You need food to survive. And as it turns out, so does Amazon. With the purchase of Whole Foods, Amazon has determined how it will get into a customer’s home. More important, it has figured out a way to welcome customers into its home. Whole Foods is Amazon’s “Welcome Home” mat.
Obviously the purchase is great news for Whole Foods with its 30% increase in stock value Friday. I love the move for Amazon too. But to me, this is a beautiful move for retail in general. Retailers have been put on notice: You’re in play.
Getting into customers’ homes is the future. It’s what Amazon, Apple, Google, Facebook, and other businesses covet. Cementing relationships with customers might require bricks and mortar after all. Shopping by desktop or mobile phone already seems antiquated in a lot of ways. Why wouldn’t Apple then, for example with its $250 billion in cash consider buying its way into retail or groceries with an acquisition of Target or Kroger? It’s not about the produce. It’s about making customers believe you are their most trusted friend.
Amazon’s move on Whole Foods will have huge implications on the tech industry. Contrary to the belief of Wall Street this may not be a death blow to Kroger. It could be a shot across the bow of Apple and Google—contrary to what Wall Street’s retail selloff may have you believe.