June 16, 2017 - Comments Off on Amazon Buys Whole Foods – Our Reaction

Amazon Buys Whole Foods – Our Reaction

There’s of course a lot of investment politics behind the deal that have little to do with better meeting an end customers’ needs. Whole Foods CEO John Mackey has had a few different things to say this week about the potential and the conclusion of the deal.

However, Amazon’s choice to purchase a premium brick-and-mortar grocery brand with a national footprint represents the potential for some pretty radical changes coming to retail that have been knocking on the door all along.

We’ve been talking about clicks and bricks and “Tearing Down the Walls” between the mobile/online customer experience in this blog for a few years. The location-based, real-world, in-store needs of brick-and-mortar shoppers that are able to be addressed by mobile technology has been a very hot subject for awhile but to date we haven’t seen anything of this scale.

Amazon has dabbled in brick-and-mortar with a series of tests over the past few years and the retail industry has questioned, “why not grocery?” but this acquisition seems to validate the location strategy of brick-and-mortar real-estate as an asset for a previously “online only” delivery-based business model.

The equity and positioning of these two brands together stands to unlock a lot of potential for mobile experience at brick-and-mortar retail that has only been a bit of dabbling to date, by comparison.

Expect to see fluid options between grocery delivery, curbside or in-store pickup based on mobile shopping lists with options for one-click ordering as users manage their needs on-device and fully integrate that support into their grocery routines. Mobile store maps, product suggestions and timely cross promotion of merchandise between a user’s purchase history and live inventory could all come to life in a new way.

Of course, every grocery shopper is not an Amazon grocery shopper or a Whole Foods Shopper and the operational and cultural realities could present significant challenges, but if the merger of their respective retail worlds is well executed, the potential to lead by example in the field of total customer experience seems truly massive.

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