instore - July 2017 - 14

How Amazon can benefit
the fresh perimeter
by Andy Nelson

Two things are certain: the effects will be many and huge, and the deal
itself was a stunner.
"My initial reaction was 'Wow!' - almost a bit speechless," says Neil Stern,
a consultant with Chicago-based McMillan Doolittle. "While this has
been rumored, I don't think anyone actually thought it would happen."
If the deal goes through, Whole Foods will retain its headquarters in
Austin, and its chief executive officer, John Mackey, will remain in
that position, according to a company news release. Whole Foods will
continue to operate under its current banner and source from established vendors and partners.
Perimeter-store grocery departments like deli and bakery should see a
big impact from the deal, Stern says.
"Fresh has been Amazon's Achilles' heel," he says. "Whole Foods's reputation should help many of these categories grow online."
14 * JULY 2017 * instore

Darren Seifer, food and beverage industry analyst for the Port
Washington, NY-based NPD Group, agreed.
"Fresh foods are the final frontier for Amazon's grocery strategy, and
its pairing with Whole Foods will help get fresh foods to the doors of its
target audience, like Amazon Prime members," Seifer says. "Fifty-two
percent of online grocery shoppers are Amazon Prime members."
Bill Bishop, chief architect and co-founder of Barrington, IL-based Brick
Meets Click, says perimeter-store departments in Amazon-era Whole
Foods stores could benefit from innovations such as kiosks where both
e-commerce orders could be placed and grab and go items sold.
"If they do that they become pretty interesting competitors to smaller
convenience stores," Bishop says.
Bishop says Amazon could also use the Whole Foods platform to
launch its own private label brands to complement the existing 365
branded items from Whole Foods.
And he says the chances are good that Amazon will bring the technology used at its Amazon Go store to Whole Foods. At Amazon Go,
shoppers buy items via smart phone, avoiding checkout lines entirely.

WHOLE FOODS MARKET

I

n the wake of online giant Amazon's announcement that it was
buying Whole Foods Market Inc., analysts and industry experts
were trying to sort out what the $13.7 billion deal, announced June
16, could mean for the retail grocery industry.



Table of Contents for the Digital Edition of instore - July 2017

instore - July 2017
Editor's Note - RETAIL FOODSERVICE: The importance of inspiration
CONTENTS
SPOTLIGHT - BY THE NUMBERS: Specialty cheeses
Equipment & Packaging - LATEST INNOVATION: Snacking concepts
News - NEED TO KNOW: Debates and definitions to watch
Industry Perspective - How Amazon can benefit the fresh perimeter
Commissary Insider
Operations: Are you ready for FSMA inspections?
Food Safety: Detecting, eliminating Listeria
Technology: Enhanced labeling capabilities
Cover story - Reaching a crossroads
IDDBA coverage - Brand central station
Fancy Food Coverage - What happens next?
Product Trends
Product Showcase
AD INDEX
instore - July 2017 - instore - July 2017
instore - July 2017 - 2
instore - July 2017 - Editor's Note - RETAIL FOODSERVICE: The importance of inspiration
instore - July 2017 - 4
instore - July 2017 - 5
instore - July 2017 - CONTENTS
instore - July 2017 - 7
instore - July 2017 - SPOTLIGHT - BY THE NUMBERS: Specialty cheeses
instore - July 2017 - 9
instore - July 2017 - Equipment & Packaging - LATEST INNOVATION: Snacking concepts
instore - July 2017 - 11
instore - July 2017 - 12
instore - July 2017 - News - NEED TO KNOW: Debates and definitions to watch
instore - July 2017 - Industry Perspective - How Amazon can benefit the fresh perimeter
instore - July 2017 - 15
instore - July 2017 - 16
instore - July 2017 - 17
instore - July 2017 - 18
instore - July 2017 - Commissary Insider
instore - July 2017 - COMM - 2
instore - July 2017 - COMM - 3
instore - July 2017 - COMM - 4
instore - July 2017 - COMM - 5
instore - July 2017 - Operations: Are you ready for FSMA inspections?
instore - July 2017 - COMM - 7
instore - July 2017 - COMM - 8
instore - July 2017 - COMM - 9
instore - July 2017 - Food Safety: Detecting, eliminating Listeria
instore - July 2017 - COMM - 11
instore - July 2017 - COMM - 12
instore - July 2017 - COMM - 13
instore - July 2017 - Technology: Enhanced labeling capabilities
instore - July 2017 - COMM - 15
instore - July 2017 - COMM - 16
instore - July 2017 - Cover story - Reaching a crossroads
instore - July 2017 - 20
instore - July 2017 - 21
instore - July 2017 - IDDBA coverage - Brand central station
instore - July 2017 - 23
instore - July 2017 - 24
instore - July 2017 - 25
instore - July 2017 - Fancy Food Coverage - What happens next?
instore - July 2017 - 27
instore - July 2017 - 28
instore - July 2017 - 29
instore - July 2017 - Product Trends
instore - July 2017 - 31
instore - July 2017 - Product Showcase
instore - July 2017 - 33
instore - July 2017 - AD INDEX
instore - July 2017 - 35
instore - July 2017 - 36
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