Amazon transformed the bookselling business by offering selection, service and low prices in an online setting. From that beginning, they have significantly transformed retail shopping using the same combination of selection, service and low prices in an online environment. Historically, Whole Foods has been known as a higher priced provider of organic foods items with a specific target market. Amazon announced it would lower prices at Whole Foods and did so immediately. Now other major grocery retailers are trying to decide how to respond with this change in their industry. The three largest, Wal-Mart, Costco and Kroger (owner of Fred Meyers), will need to respond to Whole Foods new strategy as a subsidiary of Amazon.

How do you think consumers will respond to the changes at Whole Foods? How will this affect their sales? How should each of the “big three”, Wal-Mart, Costco and Kroger, respond to Whole Foods (Amazon)? Do you think Whole Foods (Amazon) actions will expand overall grocery sales or just take away sales from others? What other changes do you expect for the grocery industry in the future?