4 minute read

Amazon acquired Whole Foods for $13.4 billion in June 2017, ushering in a new sense of urgency at its omnichannel rivals that worried Amazon would be the one to create a true omnichannel experience.

 

This has never come to be realized though, at least not in terms of Amazon delivering a game changing digital/physical strategy that delights customers at scale.

Growth Trends

Currently, Amazon has ~509 Whole Foods Stores along with ~100 additional stores under the Fresh, Go, Books, and 4-star banners.

 

Physical store sales have declined since 2018 as Whole Foods struggled to combat organic saturation across supermarket chains and Amazon did little to integrate it into a broader omnichannel strategy.

 

In 2021, physical stores accounted for ~$17 billion, a mere 3.5% of total Amazon sales for the year. Even when excluding AWS, physical stores only account for 4.1% of its revenue.

Future Plans

Amazon has aggressive expansion plans for its Amazon Fresh stores. But does it matter?

 

Not when looking at it from a financial contribution perspective.

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