Amazon acquired Whole Foods~

As a fan and investor of Amazon, I was happy with the 2% increase in the stock price after the acquisition announcement.

So why did Amazon purchase Whole Foods?

I think Amazon bought Whole Foods because it needed to figure out groceries, which is really hard! Amazon Fresh is doing better but not really a great force yet. Also, after some failed Amazon grocery store concepts hmmm…Amazon realized that they have not figured out groceries.

By buying Whole Foods, Amazon will also learn how to sell premium groceries. I see that Amazon is trying to build some Amazon brands such as Amazon Sweets but it has a long way to go. Whole Foods has been doing really well by selling premium food/ groceries. So Amazon is likely to learn how to develop and market premium groceries.

Whole Foods is also located in nice areas where there are affluent consumers. Whole Food’s stores and the distribution centers will strengthen Amazon’s retail power.

So will the acquisition work out in the end?

I think so. Amazon seems to be a good acquirer ^^

I will be long Amazon for some time ^^