Why Amazon Is Such a Threat to the Grocery Industry
How could a price drop at a chain with fewer than 500 stores scare a market with 38,000 of them?
On Thursday, Amazon announced that its deal to purchase Whole Foods for almost $14 billion will close on Monday. Once the sale is complete, one of the company’s first moves will be to lower prices on several grocery standards, such as bananas, eggs, and ground beef, as well as Whole Foods standbys like avocados, kale, and almond butter.
After the announcement, the stock prices of a number of the chain’s much bigger competitors—Kroger, Walmart, and the like—. Which was a little. (Walmart alone has .) How could a company with the footprint of Whole Foods instill such fear in its much larger competitors?
