Two years in, Amazon has hardly launched a revolution at Whole Foods
LA TimesBloomberg This weekend will mark two years since Amazon.com Inc. announced it was acquiring Whole Foods Market. YouGov, which surveys shoppers about consumer brands, has found that Whole Foods’ value perception has improved meaningfully in the past two years, showing Amazon has chipped away at the “Whole Paycheck” reputation that had hurt the grocer as rivals perceived as more price-conscious, including Kroger Co. and Walmart Inc., embraced organic food. Amazon’s lack of imagination at Whole Foods is something we’ve seen repeatedly as the e-commerce giant experiments with physical stores. Amazon’s reported revenue from its physical stores, which is principally Whole Foods, posted a 2.7% decline in the fourth quarter of 2018 from a year earlier and a 1% increase in the first quarter. Amazon won’t give up fighting for a much larger share of the more than $800 billion Americans spend on food shopping every year, and Whole Foods was a big bet that physical stores remain key to cracking that market.