Amazon is believed to have acquired Whole Foods to acquire its data and gain knowledge into the food retail industry.
In 2017, Amazon acquired Whole Foods for an estimated $13.7 billion. Initially, some believed that the acquisition marked a change in the direction of the online platform, as it was investing in a company that had retail stores. Some speculated that the company was attempting to diversify through acquiring physical stores.
However, as the acquisition process was underway, the real reasons for the acquisition was gradually unpacked by business analysts. They claimed that Amazon acquired Whole Foods for two main reasons. The first of those reasons was the consumer data that Whole Foods had. The belief was based on the speculation that Amazon was looking to diversify into online retail of fresh produce and products sold in supermarkets, As such, acquiring Whole Foods would provide the analytical data that was required.
Secondly, the acquisition was to gain access to Whole Foods’ product lines. Due to the popularity thereof, it was believed that through acquiring the brand, Amazon would be able to convert the Whole Foods clientele to customers that would buy from its online store.