Amazon Buys Whole Foods for $13.7 Billion and Signals Game On
There has been so much activity in the world that I understand if you missed this mega-deal. But pay attention. Amazon which started out selling books, videos and CD's on the Internet just purchased a 465-unit chain of storefronts.
Man we all have to step our game way up. The significance of this deal cannot be overstated. Because this is not the end-game for Jeff Bezos and company. It's only another data point on the hockey stick growth curve of Amazon.
Many people weren't paying attention when Amazon started opening a few stores in strip malls a few years ago. They even pooh-poohed the idea that Amazon was testing grocery pickup service in Seattle.
And they definitely snoozed while Amazon was working out the kinks on drone parcel delivery in the UK. But this latest move will shake everyone wide awake. Amazon is now a serious player in the $611.9 billion grocery sector. Let that sink in for a minute.
Because I'm not even going to get into the demographics and psycho-graphics of the Whole Foods consumer. But if you've ever been inside you know it's like the Apple of grocery stores.
It represents a lifestyle, mindset and price point that allows you to group those fans into a nice segment for personalized targeting. And how much data do you think Amazon already has regarding this consumer base?
Think Amazon Prime, Amazon Echo and even Amazon Kindle. Not to mention those using Amazon Web Hosting Services (AWS) and Cloud storage. The money is in the list. And what you can do to activate that list across multiple customer touchpoints.
Shares of Amazon were up roughly 3% Friday morning to $991.50.
How can you model the strategic thinking for your market segment?