Amazon’s Whole Foods Acquisition Is A Smart Logistics Play
Amazon’s mega $13.7B Whole Foods Market acquisition is about more than the expansion of its brick-and-mortar business — it is also a smart logistics play.
The e-commerce behemoth has been working to expand its physical brick-and-mortar presence for some time now, and this deal will not only give Amazon access to Whole Food’s portfolio of 450-plus stores, but it also gives Amazon control of the grocer’s distribution network — complete with store backrooms and cold storage. What does this translate into? A quicker and fresher delivery of its goods, which will prove beneficial as Amazon continues the rapid expansion of its online and physical grocery delivery business.
According to Quartz, this acquisition puts Amazon within a few miles' proximity of about a third of America’s richest households — Amazon will now have access to 75 million Americans who live within three miles of a Whole Foods.
Below is a map of all the U.S. Whole Foods stores Amazon has acquired in the $42/share all-cash deal, according to the chain's November 10K filing.
View Whole Foods Market Store Locations in a full screen map.