six colors

by Jason Snell & Dan Moren

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Linked by Dan Moren

Whole Foods: Amazon’s best new customer

As usual, Ben Thompson offers some sharp analysis, this time in explaining why Amazon is buying Whole Foods:

Today, all of the logistics that go into a Whole Foods store are for the purpose of stocking physical shelves: the entire operation is integrated. What I expect Amazon to do over the next few years is transform the Whole Foods supply chain into a service architecture based on primitives: meat, fruit, vegetables, baked goods, non-perishables (Whole Foods’ outsized reliance on store brands is something that I’m sure was very attractive to Amazon). What will make this massive investment worth it, though, is that there will be a guaranteed customer: Whole Foods Markets.