In business, a company sometimes will have to diversify its investment, and right now it seems like Amazon is in the same situation. According to recent reports which show that tech giant company has decided to open its first grocery store in the USA. In 2017 Amazon bought Whole Foods for a whopping amount of $12.7 billion and now it plans to open its first grocery chain Los Angeles by the end of this year. No clear reports have given by Amazon regarding this news, but various sources show that executives are trying to open offline retail stores in following cities also: Washington, D.C., Philadelphia, Chicago, San Francisco. Experts think this move will increase Amazon’s influence on the offline retail industry since many people across USA still prefer to do offline shopping. Retail sector currently is not performing well because of the power of online retailers like Amazon, eBay.
If we look into Amazon’s previous quarter’s performance, then company managed to book a profit of more than $3 billion with a massive revenue of 72.4 billion dollars. Whole Foods which is now a subsidiary of Amazon currently has 497 retailers across North America also it employs more than 89000 people. Amazon is one of the fastest growing tech company from silicon company which has a market capitalisation of near 1 trillion dollars. A few days ago Amazon dropped its idea of building a new headquarters in New York City after getting a massive criticism from local politicians. Some socialist politicians are against company’s way of doing business, and that’s why they want to impose a huge amount of wealth tax on wealthy people like Jeff Bezos.
The current situation is not good for Amazon since jeff while addressing shareholders a few days ago said that the company might not be able to survive in future if they don’t diversify their investments.
