Retail, grocery stocks tank after Amazon buys Whole Foods

Status

Faculty

School

School of Economics and Business Administration

Department

Marketing

Document Type

Expert Opinion

Publication Date

6-16-2016

Description

ABC7 Interviewed SEBA Professor Tomas Gomez Arias about Amazon's $13.4 billion purchase of the upscale grocery chain Whole Foods. The Saint Mary's global marketing professor commented on the decision by the online giant retailer to move into the brick and mortar environment of grocery stores. A global marketing professor and chair of the College's marketing department, Gomez-Arias observed in the ABC7 story that the move reflects Amazon latest strategic effort to establish itself in the food business. He adds, “This is an opportunity for them to accelerate entering into that sector with the acquisition of an existing supply chain and brick-and-mortar distribution network, as well as the talent to run them. For food retailing, Amazon can be as disruptive as it was for foods and so many other categories. In California, where both Whole Foods and Amazon have a large presence, it can certainly change the way we see grocery shopping."

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