What Amazon's Whole Foods buy means for beauty

Published: 20-Jun-2017

In a $13.7bn deal, e-commerce giant Amazon is set to acquire natural and organic grocery chain Whole Foods. But what does the deal signal for the cosmetics brands it sells and the industry as a whole?

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Amazon recently announced its intention to acquire leading US natural and organic grocery chain Whole Foods Market for US$13.7bn, or $42 per share.

While the takeover came as a surprise to many consumers, others in the retail industry have viewed this as a natural step for the e-commerce giant, which has steadily been honing in on the fresh food sector.

ParcelHero called the move a “logical next step” for the e-tailer, which is already delivering groceries in the US and UK through its Amazon Fresh business.

Whole Foods Market will continue to operate stores under the Whole Foods Market brand with John Mackey remaining as CEO, headquartered in the company's historic home of Austin, Texas.

The retailer is reassuring partner companies and customers that it will continue to source from the same vendors and partners globally.

Cosmetics focus

What Amazon's Whole Foods buy means for beauty

Whole Foods Market, although best known for food produce, also sells a number of natural and organic beauty brands, including Weleda, Dr. Hauschka, Mineral Fusion and Thayers.

But what could the deal signal for the cosmetics sector?

Paul Marsden, psychologist and digital strategist at Syzygy, told Cosmetics Business: “There are two things that beauty brands need to consider about the recent takeover of Whole Foods by Amazon. Firstly, all beauty brands will urgently need a dedicated Amazon strategy, including how to

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