In August, Seattle-based Amazon finalized its $13.7 billion acquisition of natural and organic retailer Whole Foods Market, Austin, Texas. The acquisition has translated into big changes not only in the pricing of many natural and organic products sold within Whole Foods stores, but likely will impact the ways that consumers purchase consumer packed goods (CPG).
The grocery price war is going to heat up, according to Chicago-based Euromonitor International’s Head of Retailing Michelle Grant in a June blog post titled “The Implications of Amazon’s Acquisition of Whole Foods.” “Grocery is the largest consumer category in the U.S., and it enjoys a high purchase frequency. Amazon has always had an eye on grocery for these reasons,” Grant stated in the blog post. “It can’t be the ‘Everything Store’ without being dominant here.”