By deloitteeditor

Reality No. 2: Amazon will likely grow share of wallet from its combined Prime and Whole Foods customer bases. At its core, Amazon is a customercentric company, constantly evolving and testing all aspects of its operations to fulfill customers’ desires. This acquisition is no different. Amazon can now provide an additional category of product to customers, thus potentially increasing the already significant amount they spend with the company annually.³ Adding fuel to this contest, there is an existing strategic overlap between Amazon Prime and Whole Foods consumer demographics.⁴ With an overlapping customer base, Amazon will likely expand into its new category from a position of strength—leveraging Whole Foods’ status and brand equity rather than having to build expertise organically. For competitors, retaining or attempting to capture new market share from these customers may prove challenging.

4. Jason Bloomberg, “Amazon’s Whole Foods Strategy: It’s Not What You Think,” Forbes, June 23, 2017.

Read the entire article at http://deloitte.wsj.com/cmo/2017/10/17/amazons-grocery-industry-disruption/

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