When Whole Foods Market began the process of merging with Amazon in 2017, the company knew changes were coming — modified internal procedures, different expectations from customers and learning the online ecosystem of its new parent company.
Almost two years later, a look at the Whole Foods' growth pattern shows just how disruptive the adjustment period was for the Austin, Texas-based grocery chain.
After Whole Foods came under Amazon's ownership in 2017 in a $13.7 billion buyout, it effectively brought a halt to its expansion efforts, according to an American-Statesman analysis of the grocer's public data.
The ownership change created a break in what had for years been a steady stream of investment in new stores by Whole Foods. But as both companies have gained their footing in the new partnership, Amazon has begun to again accelerate store expansions while continuing to implement new systems at Whole Foods locations.
"Remember, Whole Foods was a mess," before the buyout, said Phil Lempert, lead analyst at industry market research firm SupermarketGuru. "Amazon had to spend a lot of time fixing Whole Foods before rolling out more Whole Foods."
In the three years before being purchased by Amazon, the grocery chain was opening about 30 stores per year, according to data on the Whole Foods website. In 2017, as the merger unfolded, that number dropped to five new stores before climbing to about 25 new stores in 2018.
Executives for Amazon and Whole Foods declined to comment.
It's not unusual for companies to put expansion plans or new hires on hold while they are in transition, said Sucharita Kodali, an e-commerce analyst with Forrester Research.