Coronavirus unmasks Amazon's stumbles at Whole Foods

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Coronavirus unmasks Amazon's stumbles at Whole Foods
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Amazon's moves to reduce strain on its grocery businesses by putting new online shoppers on wait lists and switching more Whole Foods resources to filling orders, is unmasking limitations at the company that was expected to upend the supermarket industry.

- Amazon’s moves to reduce strain on its grocery businesses by putting new online shoppers on wait lists and switching more Whole Foods resources to filling orders, is unmasking limitations at the company that was expected to upend the supermarket industry.

Instead, Whole Foods has been overwhelmed. Amazon Prime subscribers, who pay $119 a year for free delivery, are having difficulty finding Whole Foods delivery windows, according to interviews with a dozen customers and numerous posts on social media. And when their orders do arrive, many desired products are unavailable, they say.

Amazon has said it would hire an additional 75,000 people for jobs ranging from warehouse staff to delivery drivers and switched a California Amazon grocery store and a Manhattan Whole Foods to online-only as demand for orders surges. On Sunday Amazon told Reuters it would put new grocery delivery customers on a wait list and curtail shopping hours at some Whole Foods stores to focus on orders from existing online customers.

In particular, they said the e-commerce giant with $55 billion on its balance sheet did not fortify Whole Foods’ foundation, which relies on outdated technology, outside suppliers and real estate unsuited for the unprecedented surge in demand.

UNFI told Reuters it has “greatly increased” routes and hired over 1,000 employees to support clients.Whole Foods has 10 small regional warehouses for perishables like fruit, vegetables and meats. UNFI has a network of 59 distribution centers, which average about 500,000 square feet.

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