Amazon and Whole Foods reveal logistics plan following merger

Following the completion of Amazon’s $13.7bn (£10.7bn) acquisition of grocer Whole Foods, the e-commerce giant has begun to integrate logistics across the Whole Foods portfolio. The deal, which completed on 28 August, will see Amazon lockers be installed in select Whole Foods shops. Amazon customers can have online purchases shipped to local Whole Foods shops where they will be able to process both collections and returns. Whole Foods has nine shops in the UK and bases its operations from a 12,000 sq ft warehouse in Waltham Cross, Hertfordshire. Its supply chain is outsourced to UK firm Stubbins. The portfolio is focused on affluent catchments of central London, which is also where Amazon operates best. In a statement, the companies said: “This is just the beginning – Amazon and Whole Foods Market plan to offer more in-store benefits and lower prices for customers over time as the two companies integrate logistics and point-of-sale and merchandising systems.” Whole Food’s own label products will also become available on Amazon.com through AmazonFresh. Although the companies have yet to reveal the details of how this will work, it is likely that this would require distribution to take place within the Whole Foods store portfolio, in effect making them part of the Amazon distribution network. In time Amazon will also integrate its Prime membership programme with the Whole Foods check out process. When this has been integrated, Amazon Prime members will receive special savings and in-store benefits. Increased investment into logistics and merchandising will help Whole Foods to offer sustainably lower prices to its customers. To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette