A few months ago, Amazon was making headlines with their acquisition of Whole Foods. This acquisition was outside of the norm for Amazon’s business model and signaled an aggressive expansion into the brick and mortar arena.
For a while now, the company has been brainstorming ideas for their own bodega style shops. These shops were conceptualized as using RFID chips to track purchases and just allow shoppers to walk out without going through a checkout process. This idea appears to have been put on the back burner for a time with the acquisition of Whole Foods.
Whole Foods has always had a very specific market perception that was different from how Amazon tends to position itself. For the most part, Whole Foods positioned itself as an expensive high end store.
Now that Amazon has acquired them, this market perception will begin to aggressively change. They have already begun slashing prices of products, sometimes nearly 50%.
Already trending, we can expect to see large lines at Whole Foods as excited shoppers flock to the stores. This new tactic is serving to really drive interest in new demographics and markets.
It will be even more interesting to see how they serve to incorporate the Amazon Prime Membership too.