What is lauded as the most disruptive event in grocery since the opening of the first Walmart is also the most obvious synergy no one saw coming. While low cost and quality, sustainable products seem incongruous at first glance, the taste making skills of Whole Foods coupled with arguably the most expansive and precise operations capabilities of Amazon will create the ultimate consumer first value.
The Loser: Instacart and other third-party delivery platforms
I'd speculate that more Whole Foods shoppers are also Amazon Prime members than they are Instacart or any other delivery platform users. Amazon will aggressively grow their Amazon Fresh grocery delivery reach through some introductory deal with existing Prime members and most likely do a spin off of single-use and Fresh only memberships.
What I can't predict: How the online ordering experience will be for consumers who buy exclusively Whole Foods items, a mix of Whole Foods and Amazon.com items, or Amazon.com items who could trade up to Whole Foods items.
The Winner: Start Up Brands
Twenty years ago, Amazon brought riches to the niches by uncovering the potential of long-tail brands, and this expanded omnichannel synergy will do the same. Startup brands who had difficulty testing its potential against Big Food on a limited capacity shelf will have more opportunities to launch on an digital and/or shelf solution.
The Loser: Third Party Distributors
While the transition from storing inventory through UNFI to Amazon distribution centers will be slow as Amazon build its logistics network to ship to more than 400 stores, there is no doubt that Amazon will bring everything operations in-house.
The Winner: Consumers
This one is the most easy to imagine - you have expanded shopping solutions as both a Prime and Whole Foods shopper. Whether it's dropping off Amazon returns at the same time you're picking up asparagus water or adding 365 brand items to your Amazon cart, you'll realize you'll transition more of your shopping experience to Amazon than you originally imaged.
The Loser: Single Purpose Chains
While general vitamin shops and natural health stores are going the way of Radio Shack (whether they are ready to accept that or not), Amazon-Whole Foods will help expedite the funeral proceedings. Single purpose chains may always boast a wider selection, but lowered prices and better convenience at Whole Foods will convert a significant amount of shoppers fast.
Up in the Air: The Producers
I'm hoping the rigid standards of Whole Foods sourcing and sustainability practices expand beyond the brick and mortar banner. Amazon is in an unprecedented position to change the way consumers shop for food, thus changing the way manufacturers make food and producers produce food. Clean ingredient decks, humane practices, sustainable harvesting should now be the expectation of the new retail trailblazer.