Dive Brief:
- Amazon has named a restructured leadership team for its Worldwide Grocery division that includes top executives from Whole Foods Market, according to a report by Business Insider, which cited a corporate memo that was confirmed by an Amazon spokesperson.
- In addition, Whole Foods Market corporate employees will migrate to the same system as Amazon employees for benefits, compensation structure and other aspects of their jobs, an Amazon spokesperson confirmed to Grocery Dive.
- As Amazon works to grow its grocery business, it’s further integrating Whole Foods, which it acquired in 2017 and has mainly operated as a separate business.
Dive Insight:
As Amazon’s various grocery brands have continued to grow and cross-pollinate, it seemed only a matter of time before the company brought its biggest industry asset further under its wing.
After Amazon acquired Whole Foods eight years ago, it mostly stayed out of the specialty grocers’ way, letting it continue to expand and maintain its product standards as Amazon learned more about the business. Since then, Amazon launched its own grocery chain, Amazon Fresh and outlined plans for a more integrated online shopping experience that allows customers to combine products from Whole Foods, Amazon Fresh and Amazon’s main marketplace. During a question-and-answer session with investors late last month, Amazon CEO Andy Jassy said he’s “very bullish” on the company’s future in grocery.
These latest moves are part of an initiative Amazon is calling “One Grocery,” according to the memo first reported by Business Insider. They mark the first major realignment under Jason Buechel, who became head of Amazon’s grocery division early this year after serving as CEO of Whole Foods since 2022.
The updated leadership team appears to be a mix of individuals who are assuming new roles and some who are continuing in their current roles. Karen Christensen, who has worked at Whole Foods for nearly 30 years and is the grocer’s SVP of merchandising, will lead North America Amazon Fresh and Amazon Go, per Business Insider’s report. Sonya Gafsi Oblisk, who became Whole Foods’ chief merchandising and marketing officer in 2023, will lead Worldwide Grocery marketing and private brands along with Whole Foods Market Business.
Whole Foods veterans Bill Jordan and Christina Minardi are also listed under the new Worldwide Grocery leadership team, with the former heading up store operations while the latter will lead the division’s real estate growth and development. Amazon veteran Anand Varadarajan will lead technology and supply chain, according to the report.
In recent years, Amazon tried to simplify its team structure and promote collaboration across its grocery businesses in areas like real estate, technology and private brands, an Amazon spokesperson told Grocery Dive. Now, Whole Foods corporate workers will join Amazon’s programs and offerings for employees in an effort to foster collaboration and speed up innovation.
“To make it even easier to collaborate and innovate on behalf of our customers, we’re continuing to unify teams across our grocery brands,” Amazon spokesperson Lauren Snyder said in a statement. “These changes reflect our long-term commitment to making grocery shopping easier, faster, and more affordable for customers.”
Amazon Fresh, which operates more than 60 stores, recently rolled out a refreshed design at many of the banner’s locations that has helped increase shoppers’ average monthly store spend by more than 20%, per Amazon’s spokesperson. Its stores are also aggressively touting low prices.
Whole Foods operates more than 535 locations and has grown rapidly in recent years. It recently began opening small-format shops in New York City and plans to test an automated micro-fulfillment center in one of its stores to provide a top-up assortment of conventional groceries and nonfood items.
Peyton Bigora contributed reporting.
