When Amazon.com Inc . completes its possession of Whole Foods Market Inc ., Chief Executive Officer Jeff Bezos will try to keep the grocer’s stature for premium fresh meat while trimming prices to shed its “Whole Paycheck” image.
Amazon expects to reduce headcount and change inventory to lower tolls and construct Whole Foods competitive with Wal-Mart Store Inc . and other big-box retailers, according to a person with knowledge of the company’s grocery schemes. That included potentially exerting technology to remove cashiers. An Amazon spokesman denied any occupation parts were planned.
Amazon, known for its competitive costs, is trying to lure more low- and middle-income customers with its grocery pushing. The Seattle-based fellowship previously offers rejected Amazon Prime bodies for beings receiving government assistance and forms part of a pilot program to deliver groceries to food-stamp recipients.
Whole Foods has already been shortening tolls to try to turn around its worst sales slump since going public in 1992. It has four “3 65 by Whole Foods Market” stores that are cheaper to build and operate than a usual location and offer lower-priced entries is targeted at younger shoppers.
Amazon is considering extending the cost-cutting exertion with the no-checkout technology it’s developing at its Seattle convenience store, “AmazonGo,” according to the person familiar with the matter, who asked not to be identified because the plans are private. The technology causes people offer with smartphones without considering a cashier or going to a checkout kiosk, which would help Amazon differentiate itself in the brick-and-mortar place and reduce proletariat rates at Whole Foods stores. The employees standing would help improve the browse experience, the person or persons said.
Drew Herdener, an Amazon spokesman, said in a statement the company has ” no plans to use no-checkout engineering to automate the number of jobs of tellers at Whole Foods and no job reductions are contrived .”
Amazon would also look to change Whole Foods’ inventorying, innovating its own private-label products to supplant components deemed too expensive to have mass request, the person or persons with knowledge of the matter told. That fits with Whole Foods private-label pushing to vie on rate, and holds Amazon a bigger foundation on which to develop its own nutrient brands.
Such changes may be a long way off, and Amazon has spate of time to change its strategy, with the $13.7 billion bargain not expected to close until the second half. And Whole Foods shares climbed 29 percentage to $42.68 Friday — more than the $42 consider expenditure — indicating investors expect another bidder may emerge.