Amazon Acquires Whole Foods

Dean Esmail, Sophomore Staff Writer

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Amazon has forever revolutionized global commerce in today’s society. The company allows users to buy and sell products online, and is becoming one of the fastest growing businesses in the world. Recently, Amazon has made the decision to further expand its business by purchasing the Whole Foods Market. Through the company’s purchase of Whole Foods, it has “cut prices at Whole Foods Market as much as 43 percent,” according to Bloomberg.com. This unexpected expansion has now made Amazon a fearful competitor to many food retailers, and could potentially send their rivals tumbling down.

The Whole Foods price cut has put competitors in a tough position. “Price makes a huge difference in determining where I buy my food,” says Zach Resatar, a senior at Hubbard High School. “If Whole Foods is selling products for a cheaper price, I’m probably going to end up buying from there.” Foursquare, “a technology company that uses location intelligence to build meaningful consumer experiences and business solutions” finds that in stores in Chicago, 35 percent more shoppers have visited Whole Food Stores. Typically, individuals are more inclined to purchase inexpensive products, and this trend has been prevalent ever since Amazon’s acquisition.

In addition to Amazon’s price cuts on Whole Foods, the company provides simplicity among its consumers. With over 450 Whole Food stores, Amazon can deliver Whole Foods to over 70 percent of the United States population, shows a Barron’s Next analysis. Using technologies such as Amazon Echo, consumers would rather order their groceries from home than go out and get them. Their convenience, as well as their inexpensive prices, make Amazon an even more dangerously competitive company.

Food chains such as Walmart are engaging in their best efforts to challenge Amazon. Rivals have started providing free shipping and lowering prices of their products, and consumers are struggling to determine where they should buy their products. Amazon seems to have started a so-called “survival of the fittest.”

 

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