Amazon announced its plans to acquire Whole Foods last June, effectively declaring war on grocery stores and delivery services across the country. The world's largest online marketplace is to purchase the eighth largest grocery chain in the country by sales for $13.7 billion. Amazon is expected to slash prices at Whole Foods, a store once notorious for being high-end. The acquisition could take a bite out of profits of other grocery chains, including major players like Kroger and Walmart.
It may threaten delivery companies like Peapod and Fresh Direct, and even prepared meal delivery providers like Blue Apron.
It wouldn't be the first time Amazon brought down once mighty corporations. When Amazon came on the scene and started selling cheaper books, electronics, major competitors fell soon after. Remember Borders Tower Records, and Circuit City? We don't either.
But one grocery store isn't going to go down without a fight. The German supermarket chain Aldi is teaming up with Instacart to get in on the grocery delivery game. Using the Instacart website or app, customers will be able to order groceries from Aldi, which Instacart will pick up and bring directly to their homes in as little as one hour. The Aldi-Instacart pilet program will begin at the end of August in three test cities: Dallas, Atlanta, and Los Angeles.
Aldi was founded by a family in Germany more than a century ago, which makes it one of the first discount grocery stores in the world. Today, Aldi has more than 1,600 stores in 35 states. The chain sets itself apart from other major grocery retailers with its low prices and inventory of nearly exclusively Aldi-brand products.
The scrappy little chain is famous for taking on giant supermarket corporations. Earlier this year, Aldi started trying to beat out Walmart's prices.
Will stores like Aldi be able to fight back against Amazon's reign? Or will Aldi, Walmart, Krogers, Costco, Jewel-Osco, Target, and competitors suffer death by Amazon?