When Amazon bought Whole Foods for $13.7 billion in June of this year, brick and mortar grocers collectively shuddered: Amazon, the king of commerce, had continued its play into offline retail. Starting with the opening of Amazon bookstores (they currently have seven physical retail stores across the US), Amazon is leveraging its decades of data in order to change the way consumers shop in brick-and-mortar stores.
“We have this 20 years of information about books and ratings, and we have millions and millions of customers who are passionate,” said Jennifer Cast, VP of Amazon Books.
As Amazon moves into the grocery space, they stand to benefit from that same data that built their preeminence in the online world.
And so, the question remains: How can pure offline brands survive Amazon’s unchallenged move into their space?