Originally published in Entrepreneur Magazine

By Brian Watson

The implications of Amazon’s $13.7-billion Whole Foods Market purchase will go significantly beyond the world of grocery stores, potentially reshaping retail districts in downtowns and suburban shopping areas across America.

Not long ago, the typical American strip mall had a video store, music store and a supermarket. However, Napster and iTunes slayed the neighborhood music store, Blockbuster’s 9,000 video stores were killed by Netflix, and now the local grocery store will get a makeover. It’s a change that will reimagine how we shop and create commercial real estate investment opportunities.

Amazon’s purchase of Whole Foods dramatically changes the $674-billion U.S. grocery market. On the day the deal was announced, competitors across the board — from Walmart and Costco to Kroger and Sprouts Farmers Market — lost a combined $22 billion of market value. That loss came because investors expect Amazon to utterly transform the grocery business.

What’s so scary about Amazon? It makes every business it competes with efficient, squeezing waste out of the supply chain and compressing margins for the entire industry. Now, Whole Foods’ 450 stores in 42 states will form the start of a nationwide distribution center for groceries that will build upon the Amazon Fresh grocery delivery unit, founded in 2007.

Read the full article at https://www.entrepreneur.com/article/296409

Brian Watson is Chairman and CEO at Northstar Commercial Partners.