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Amazon insider speculates on grocery strategy (AMZN)

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Amazon will pass Walmart as the top US grocer by 2030 following its $13.7 billion acquisition of Whole Foods, predicted Brittain Ladd, a former Amazon executive

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Amazon will benefit from new access to a wide array of in-store and grocery-specific shopping data. Ladd suggested that Amazon should spend the first year after the acquisition gathering insights on consumer preferences and grocery operations to formulate an overarching grocery strategy.

This could allow Amazon to produce targeted private-label items, maximize the appeal of its AmazonFresh grocery delivery service, and even designstore formats that match

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Ladd offered several predictions on how Amazon will proceed with Whole Foods to take control of the grocery industry.

  • Amazon will use Whole Foods to build consumer trust in AmazonFresh.
  • Amazon will seek to build a reputation of providing
  • consistently fresh, high-quality produce
  • at
  • Whole Foods stores
  • and, subsequently, through AmazonFresh. That's an important goal, because t
  • he primary obstacle for online grocery services is that consumers often prefer to examine the produce they buy for quality. If consumers trust that they're getting the same quality
  • of produce through AmazonFresh as they do in Whole Foods stores, it would likely solve this issue.
  • Several different store formats will be introduced to maximize value.
  • Whole Foods
  • ’ smaller
  • drive-thru
  • locations for AmazonFresh
  • which offer cheaper prices on Whole Foods brands, is integral to Amazon coming out on top in
  • Ladd also suggested that 365 stores could feature Amazon Go
  • technology
  • , which could drive down operational costs
  • , potentially leading to further savings for consumers
  • .
  • Whole Foods will eventually be rebranded to shift focus to Amazon.

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