Why would Amazon buy Whole Foods?
Ironically, the answer is in the name, Amazon. The Amazon jungle is the life blood of the western hemisphere providing the ecosystem and environment to nourish over a billion in population and drives civilization’s largest economies.
Having worked with Amazon when they first launched, Jeff Bezos’ goal seemed to be to want to bring everything a consumer could possibly want instantaneously to any part of the globe. So it’s not a surprise that Whole Foods would be part of the consideration. What I like about this is that Amazon has an opportunity to revamp the village economy that’s been largely decimated and ignored by chain retailers such as the Walmart’s and Kmart’s of the previous generation. There will be a shift to employee first and long-term strategy versus a shareholder driven short term view of profit and loss.
What’s the State of Retail?
I don’t think we should see the world from a “zero-sum” game perspective. As a consumer myself, I have seen a big shift in my own buying behavior. Looking back, I never thought I’d stop going to the produce markets to use Fresh Direct or Google Express, as an example. We also must be mindful that many consumers are in various transition stages. This means there’s a role for physical spaces.
How Can a Large Retailer Turn the Tide Through Digital Transformation?
It’s not about digital or physical, really. Most businesses are fully on the transformation journey. The problem lies in whether it’s the right one for them. To understand that, it’s important to understand the organization’s wherewithal and capability from the vantage point of research, data, technology, legal, processes and talent.
With regards to research, this is a crucial first step and most businesses sit on a treasure trove of information. Data is another challenge for large companies. The most puzzling of blockers is technology. Processes are absolutely the linchpin to all of this. And talent is the single most important opportunity for an organization to mine.
Is Amazon looking at Whole Foods as a way to build and bring in new thinking and talent that is supporting a greater vision? Businesses shouldn’t purchase using a one-dimensional strategy.
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