How Has Amazon Changed Whole Foods?

A year ago, the food industry was forever changed when tech giant Amazon announced it would be acquiring the high-end grocery chain, Whole Foods for $13.7 billion. 

Amazon CEO Jeff Bezos went to great lengths to keep the deal a secret. 

But once the deal was announced last June, grocery chains started to jump on the food delivery train quick in order to compete with the logistics giant. 

Kroger's stock dropped from $31 to $22 at the time of the acquisition and now it trades at around $24. 

Kroger recently invested in the meal kit company Home Chef. Target bought Shipt, a delivery company. Albertsons bought another meal kit company, Plated. All done by grocery rivals to stay competitive with Amazon. 

At the time of the acquisition, Whole Foods same-store sales were declining 1.5 percent, so it's safe to say, the chain needed to be revamped. 

Amazon immediately slashed Whole Food's prices and started offering Amazon Prime members promotions. 

Then Amazon started to sell its products like the Echo in store and started offering free delivery for Prime members. 

Whole Foods Amazon

But the tech giant also made big changes to the way the chain made its purchasing and merchandising.  

"It has begun to centralize purchasing for its suppliers. That means many small brands need to go through WFM headquarters in Austin, Texas, to get placed in a store, not through their regional Whole Foods representative. That approach simplifies operations and makes it easier for a brand to scale without traveling region by region," writes "CNBC." "Whole Foods has also begun to centralize its merchandising, which means it's now taking care of in-store displays and setup — rather than allowing brands to outsource the task to third-party services."

But Amazon wasn't only interested in Whole Foods for its massive brick-and-mortar presence, Amazon is now collecting more precise data on its customers. 

"As Amazon combines its Prime service and Whole Foods shopping experience, it's getting even more insight into how the same person shops on and offline. That means a better ability to target ads and promotions than a grocer typically is able to. Because many shoppers still browse groceries online but shop in person, this combination threatens to be particularly powerful," writes "CNBC." 

The data on what Amazon Prime members are buying in-store at Whole Foods is valuable to help Amazon serve targeted ads on it online marketplace. 

Although Amazon made the decision to get into the grocery space, the percentage of grocery shopping done online is still relatively small. But that doesn't mean there isn't massive potential.

Read more about how Whole Foods has changed since Amazon bought the chain last year at "CNBC."