It's no secret that Amazon has disrupted the traditional retail scheme over the past decade with crazy fast delivery service, low prices, and high-quality goods. With the company's ability to bring virtually anything you want directly to your door, fast, it made many brick-and-mortar stores obsolete--take the previous bookstore giant, Borders, for example.
Now, however, it looks like Amazon is doing a massive 180 with its newest, crazy deal.
As reported by the New York Times last month:
Amazon agreed to buy the upscale grocery chain Whole Foods for $13.4 billion, in a deal that will instantly transform the company that pioneered online shopping into a merchant with physical outposts in hundreds of neighborhoods across the country.
The addition of Whole Foods takes Amazon's physical presence to a new level. The grocery chain includes more than 460 stores in the United States, Canada and Britain with sales of $16 billion in the last fiscal year.
So, why exactly is Amazon's acquisition of Whole Foods something that should matter to the rest of us?
Here's why in one sentence:
The online retailer's $14 billion dollar deal contradicts exactly what Amazon has proved through its work the last decade: that physical, brick-and-mortar store spaces are unnecessary for successful sale of low-cost, high-quality goods across the country.
Although the acquisition raises concerns about a couple things--like the anticipated elevated cost of Amazon food services, as well as the conglomerate's huge antitrust problem highlighted by Donald Trump in May--the most intriguing facet of the situation is why Amazon has decided to invest in brick-and-mortar stores in a huge way.
The innovative, front-of-the-line company has completely revamped the retail industry once before--so it's no surprise that they're just doing what they do best once again. Who knows, maybe retail is moving off the web and back to brick and mortar, and Amazon is simply leading the pack.