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Business & Economy

Supply Chain Professor: Amazon’s Acquisition of Whole Foods Is Game Changer for Grocery Industry

Friday, June 16, 2017, By Kerri D. Howell
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facultyWhitman School of Management
Patrick Penfield

Patrick Penfield

An announcement Friday by online retailer Amazon regarding its intended purchase of Whole Foods is a game changer for the grocery industry, according to an expert in supply chain management and practices.

Patrick Penfield, professor of supply chain practice in the Whitman School of Management, believes Amazon’s acquisition of Whole Foods is a win-win for both companies.

Pasadena, United States - November 15, 2014:  Whole Food Market exterior.  Whole Foods is an American foods supermarket chain specializing in natural and organic foods.

Pasadena, United States – November 15, 2014: Whole Food Market exterior. Whole Foods is an American foods supermarket chain specializing in natural and organic foods.

“The potential acquisition of Whole Foods by Amazon would be a game changer and will impact the entire grocery retail space,” he says. “Amazon’s web presence, economies of scale, technology, distribution and back office operations would give Whole Foods a competitive advantage over other supermarket operations. Amazon has been trying to develop its own online grocery business and this acquisition will accelerate that growth. I can see an omni-channel application being used where AmazonFresh could ship from Whole Food stores throughout the country.”

According to reports, Amazon will pay more than $13 billion for Whole Foods when the deal is finalized before the end of 2017.

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