Amazon's $13.7 billion purchase of Whole Foods Market, the largest acquisition in the Seattle company's history, will give the e-commerce giant a much bigger presence in physical retail, including almost 450 stores across the United States.
"They're not stupid enough to go change that", Whole Foods Chief Executive John Mackey said in a Friday town hall, according to the filing.
In response to a question about how Whole Foods' relationship with various stakeholders would change following the marriage to Amazon, Mackey said the company would evolve to match Amazon's relentless focus on customers.
With the new merger, grocery stores may see their business revamped in ways not fancied before. We're gonna - we're gonna - we're gonna import their passion about that. There's no better company in the entire world for Whole Foods Market than this company right here.
Stock prices for grocery sellers like Costco, Target, and Kroger have tanked since word broke of Amazon's acquisition, and some Whole Foods loyalists have bashed the deal as a sellout that could destroy a retail brand they love.
"We will be joining a company that's visionary", Mackey said. I think we could've talked for 10 hours.
According to analysts at Cowen & Co., Amazon, which is expected to be the ninth largest grocery retailer in the USA this year thanks to Amazon Fresh, would become the third largest with the acquisition of Whole Foods. That's believed to be the reason Amazon has had a limited breakthrough in the grocery business.
What this deal means for food manufacturing is unclear yet.More news: Former NBA Guard Jason Williams Injured in BIG3
More news: Georgia's first republican woman elected to Congress
More news: Tourist boat with 150 aboard sinks near Colombian city
Amazon is feared to be planning a bloodbath at Whole Foods.
Amazon has been longing for a piece of the action and despite the launch of AmazonFresh over a decade ago, it is an industry that Jeff Bezos has found hard to get into. Amazon, which made a splash a year ago with a checkout-free grocery store, has said it has no plans to automate the jobs of Whole Foods cashiers.
A recent AJP poll revealed most of our readers (39%) do not support Amazon entering the pharmacy arena in Australia.
Amazon is known for taking the long view.
"This transaction is going to change the landscape of how you buy food", Mickey Chadha, Moody's vice president and senior credit officer who covers Whole Foods, told CNBC's "Squawk Box" on Monday morning.
And there's no shortage of speculation about the ways the company could innovate and leverage Whole Foods locations to further its interests.
When asked about how benefits and compensation would synch up for Amazon and Whole Foods employees, Mackey joked that everyone would get free Amazon Echos. While the bid for Whole Foods may not bridge Amazon's "last mile", it certainly brings it closer, experts say.