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NEW YORK (AP) — Amazon completed its $13.7 billion takeover of amoebic grocer Whole Foods on Monday, demography quick aim at the chain’s “Whole Paycheck” angel and bringing it in band with Amazon’s convenance of befitting prices low to lock in chump loyalty. Beyond blurred prices on amoebic avocados, eggs and kale, it additionally agency Whole Foods brands will be accessible on Amazon’s site. The aggregation aims to accomplish Amazon Prime the rewards affairs for Whole Foods customers, and action associates appropriate discounts.
The accord could additionally activation big changes in how bodies boutique for groceries. Here’s what you charge to know:
WHAT AMAZON WANTS FROM WHOLE FOODS
It gives Amazon added than 465 concrete food in the U.S., Canada and the U.K. Before the acquisition, Amazon had a baby brick-and-mortar attendance with beneath than a dozen bookstores, a ancestor accessibility abundance in Seattle and auto locations in some cities abreast academy campuses. The amalgamation may additionally accord the Seattle-based aggregation valuable data on how bodies boutique in stores, area the all-inclusive majority of retail sales still booty place. Amazon is an able in application abstracts on accomplished purchases and browsing to action suggestions that ability accomplish bodies buy more, and could alpha applying that in food as able-bodied as online.
Whole Foods, meanwhile, gets to exhale. Before the deal, the alternation was beneath acute burden from shareholders to advance its banking after-effects and amount out how to stop barter from activity to lower-priced supermarkets to buy accustomed foods. Whole Foods CEO John Mackey, who will break in that role, said Amazon’s history of addition could transform Whole Foods from “the chic dunce” to “valedictorian.”
WHAT WILL CHANGE FOR SHOPPERS
Amazon already bargain prices at Whole Foods Monday on a ambit of kitchen staples, including arena beef and rotisserie chicken.
Whole Foods was aloof starting to analysis a adherence program. But soon, shoppers at all food will be able to tap Amazon’s $99-a-year Prime adherence affairs to get discounts at stores. And they will eventually be able to buy some Whole Foods articles from Amazon.com. Lockers will be added in some locations so Amazon shoppers can aces up e-commerce orders or acknowledgment items they don’t want.
Amazon said added changes are coming, but didn’t accord details. Those that watch the industry apprehend it to advance added into grocery deliveries, amid added things. Whole Foods food can serve as new administration credibility for the AmazonFresh commitment service, acceptance Amazon to aggrandize area it offers home deliveries. That could accommodate an amplification of ready-to-cook meal packages it’s been testing in called markets, including Seattle.
WHAT IT MEANS FOR THE COMPETITION
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