Scott Galloway spoke to Business Insider on May 8, 2017, where he predicted Amazon’s blockbuster acquisition of Whole Foods. Following is a transcript of the video.
GALLOWAY: Grocery is probably the most ripe consumer sector to be disrupted in all of the consumer world. It’s the largest consumer sector in the world about a 750 billion dollar market just in the US. But if you go into the middle of a supermarket in his spin yourself around and you open your eyes it would take you a while to figure out your not a 1985. Same bad lighting, same bad brands and oftentimes the same depressed clerk checking you out. Whole Foods came in and offered something different and better.
Unfortunately, it was just too damn expensive. And there’s some people doing a great job — there’s Wegmans and Trader Joe’s. But when you look at the size of the market there’s still huge opportunity. My prediction is that Amazon will acquire an organisation like a Whole Foods or Wegmans as they have not figured out grocery. They need distribution and these companies have been beaten up, some of them have been beaten up so badly that they might be worth the acquisition price just for the distribution. They could close the stores down and just use them as warehouses.
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