AUSTIN, TX—Following on the news that Amazon would acquire Whole Foods Market in a $13.7-billion deal, the upscale grocery chain's CEO hinted that the future might hold a different brand, among other changes. CEO John Mackey made his comments at a town hall meeting for Whole Foods employees Friday, a transcript of which was filed Monday with the SEC.
“Over time, there could be other formats that evolve” that wouldn't be branded Whole Foods Market and would maintain different standards, Mackey told employees. “But the Whole Foods Market stores and our brands, the integrity we have behind our products and our brand will be intact. They don't want to change those things.”
Speculation has been rife since Amazon and Whole Foods jointly announced the acquisition on Friday, with some investors holding out for what they see as a potential bidding war between Amazon and other would-be buyers. Analysts have also offered predictions on what the world's largest online retailer might acquire next in terms of brick-and-mortar grocery operations, with Bloomberg Business reporting on Monday that one possibility is France's Carrefour SA.
Even under the umbrella of the Amazon/Whole Foods deal, though, changes are likely as Whole Foods operations take some lessons from the chain's new ownership. “One of the things they do better than us: they are more customer-centric than we are,” Mackey said Friday. “They really are. And one of my takeaways is that we're going to become as customer-centric as Amazon. We're going to import their passion about that.”
He cited Amazon's lead in technology as one area in which Whole Foods could advance. “They're at the forefront of technology,” said Mackey. “And we're a little behind there. So I think that we can expect that we'll go to the front of the class, eventually, in the grocery business,” going from “class dunce” to “class valedictorian.”
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
