Amazon Pushes for More Flexible Inventory in Whole Foods Stores


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Fri. March 2nd, 2018 - by Melissa De Leon Chavez

AUSTIN, TX - When Amazon took on grocery giant Whole Foods, it was widely accepted that changes were on their way, but the initial feeling, according to the grocer's Co-Founder and CEO John Mackey, was of an aligned vision.

The merger has raised some questions. Is Whole Foods' well-known fresh approach and strict policies banning artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats, in question? The parent company may be looking to shift Whole Foods' well-known stance in pursuit of lower prices and income maintenance, reported Yahoo Finance.

Whole Foods storefront

The quarter ending September 24th of last year, a quarter during which Amazon maintained the grocer, boasted a 4.4 percent increase in sales from the previous year. The report explained that this increase is the biggest in two years, and that the e-commerce titan's takeover of Whole Foods includes a key initiative to make the grocery chain profitable with changes on the shelves.

An example of this transition may be seen in the possible addition of Coca Cola, a brand that wouldn't have been found at the Whole Foods of yesteryear; however, Senior Vice President of Communications for Whole Foods Brooke Buchanan told Business Insider that the chain's culture will "naturally evolve" under Amazon's guidance.

Brooke Buchanan, Senior Vice President of Communications & Government Affairs, Whole Foods

"Working together with Amazon has allowed us to lower some prices and bring our natural and organic food to more people, without compromising our industry-leading quality standards," Buchanan said. "While our culture will naturally evolve, the fundamentals of Whole Foods Market-our high-quality standards and our team members' passion, spirit of innovation, philanthropy, and commitment to an exceptional customer experience-will always be a part of who we are and how we do business."

When asked in a separate Yahoo Finance interview whether the grocery chain would be adding "consumer packaged goods like Coca-Cola," Buchanan stood firm in her constitution.

Amazon headquarters

"As you know, we have really high-quality standards, and those products that you just mentioned don't meet those quality standards. If there were new products that actually do meet our quality standards, then there's always that consideration," she resounded.

At the time of Yahoo Finance's article, Amazon declined to comment.

On the brighter side of this inclusion of brands formerly foreign to the grocery retailer, some connected with unhealthy options have since come up with healthy alternatives. An example of this can be found in PepsiCo's Frito-Lay, which developed an organic Doritos under the name "Simply." This line, for one, meets the criteria, Bloomberg reported last year.

Under new managing criteria, will Whole Foods' shelves be lined with new brands that are familiar to other retail chains, and how will this transition reflect on the fresh produce scene? AndNowUKnow will keep you updated with the latest developments.

Whole Foods Amazon