How Amazon is Making Big Changes to Whole Foods

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When the tech giant acquired the organic grocery chain Whole Foods for $13.5 billion, the world was shocked.

But then came the questions like "how would Amazon make the struggling retail store more profitable?"

Well fast forward to 18 months after the massive acquisition– Amazon has attempted to decrease prices, has plans to ramp up its selection of vegan and plant-based products, and is aiming to make the grocery store more customer-service focused.

Those aren't the only changes though.

According to a recent report from "The Wall Street Journal," Amazon is looking to increase the size of stores in a few areas of the country where Whole Foods isn't established yet.

"It all marks an evolution for the chain from its trendy, mostly urban health store roots, to what seems like it could become a hybrid grocery store and warehouse strategy for Amazon Prime," writes "Inc."

Amazon is looking at 45,000-square foot retail spaces for these new stores.

According to the "WSJ," the larger store sizes are "to accommodate Amazon delivery and pickup from online orders."

Amazon Prime members in over 60 cities in the U.S. can get two-hour delivery from Whole Foods and the E-commerce giant is planning to expand this service to all 475 stores, according to "WSJ' sources.

Although the "WSJ" doesn't name its sources, it's the same publication that broke the story about Amazon dividing up its second headquarters dubbed HQ2 with one big office in Queens, New York and another just outside of Washington, D.C.

Read more about the big changes Amazon is making to the new Whole Foods stores at “Inc.”

As grocery delivery becomes more accessible, this encourages consumers to eat at home. This is only going to cut into the restaurant business.

But Amazon has become a double threat to the restaurant industry with its Amazon Go stores. Although there are a limited number of these cashier-less convenience stores, Amazon has a lofty goal to roll out 3,000 stores by 2021.

The current stores have spiked in popularity during the week in between lunchtime hours, meaning consumers could be picking up what they need during their lunch along with grab-and-go food options.

Check out The Barron Report episode below to see Host Paul Barron explain how these stores poise a threat specifically to the fast casual sector.