Roger McNamee, an investor and co-founder at Elevation Partners says that Amazon is a massive disruptor for select sectors and the entire economy.
Amazon has confirmed that the acquisition of Whole Foods for $13.7 billion will close on Monday, Aug. 28, setting the stage for its Prime membership program to be part of Whole Foods checkout system and the unleashing of low prices across the grocery chain.
The Austin, Texas, based grocer founded in 1980, will give Amazon massive brick-and –mortar presence through Whole Foods’ 468 stores across North America and the U.K. in the deal that was first revealed in June.
In a joint press release the two giants said they will ensure that Whole Foods Market’s organic food becomes affordable to everyone. To kick off the strategy, Whole Foods Market will start lowering prices starting Monday for a selection of best-selling grocery staples across its stores.
In addition the technology teams from the two companies will embark on integration of Amazon Prime into the Whole Foods Market point-of-sale system to bring in-store benefits to Amazon’s coveted Prime members.
Jeff Wilke, CEO of Amazon Worldwide Consumer said they have the determination to lower prices but maintain the highest standards and that starting Monday a selection of best-selling grocery staples including creamy and crunchy almond butter, organic avocados, animal-welfare-rated 85% lean ground beef, 365 Everyday Value organic butter, organic large brown eggs, organic baby kale and baby lettuce, organic responsibly-farmed salmon and tilapia, organic Gala and Fuji apples, organic rotisserie chicken and Whole Trade organic bananas will be among the first to get a price drop. He added that more products will be lined up for price reduction and Amazon Prime will become the customer rewards program at Whole Foods Market.
Whole Foods Market co-founder and CEO, John Mackey on the other hand said that for 39 years the mission at Whole Foods Market has been to bring the highest quality food to their customers and that by working together with Amazon and integrating their systems they will be able to lower prices and double down on that mission by reaching more people with Whole Foods Market’s high-quality, natural and organic food.
Further, the integration will see Amazon Lockers become available in select Whole Foods Market stores enabling customers to have their products shipped from Amazon.com directly to their local Whole Foods Market store for pick up. They will also be able to send returns back to Amazon during a trip to that local store. Whole Foods Market’s private label products for example 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch will also become available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
According to the statement, Whole Foods Market’s headquarters will remain in Austin, Texas and operations will be under the same brand with John Mackey continuing as CEO. The company will continue to partner with, and support local farmers and artisans, source from trusted vendors, create jobs in local communities and preserve its high standards and commitment to providing the finest natural and organic foods.