Why Amazon could buy Carrefour for more than 13,000 million euros

It has echoed a rumor that had been going around the heads of many for a long time: Amazon could buy for 13,146 million euros, value that corresponds to the market capitalization of the French distribution giant on the market.

Amazon also wants to take over the offline

It is not the first time that Amazon has struggled to gain a foothold in the traditional market. In June of this year, for 13.7 billion dollars, becoming quite a threat for the traditional leaders of the food distribution (physical) sector in the United States, such as Walmart.

Perhaps that is why it is interesting to see how Amazon has raised his strategy for Whole Foods in these first months: decisions that have been accompanied by a 25% increase in its clientele. What has Amazon contributed?

Among other things it has lowered the level of prices reaching even 43% in some products. Whole Foods was a chain of organic supermarkets with great prestige in the American and British markets, but nevertheless with a high product price. And all, of course, accompanied by a great advertising campaign with which it has been done with the attention of consumers.

The Indian example: Amazon Experience Centers

But examples of Amazon’s expansion into the physical world not limited to Europe and the United States: We recently told you about their new proposal to conquer the appetizing Indian market, which still has a long way to go to fully adapt to eCommerce.

The company’s new omnichannel proposal, the Amazon Experience Centers, is designed to do battle, precisely, in this country. Is about physical establishments where customers can try and purchase fashion products. In principle, they will work on the chain Shoppers Shop Ltd, of which Amazon bought 5% for 23.6 million euros. The forecast is to expand their number to 100 in the next four years.

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DIA, the main victim in Spain of the purchase of Carrefour

To act in a similar way with Carrefour would suppose a great threat to the rest of the supermarket chains that are currently operating in Europe and that they are the ones that can suffer the most from the fact that Amazon can now have physical points where they can provide customer service or pick up the purchase that they have previously made online.

Beyond the economic value of the operation, take a quick look at theThe presence of Carrefour in our country It can serve to get an idea of ​​​​the enormous muscle of physical distribution that the company would achieve:

  • 200 Carrefour hypermarkets
  • 117 Carrefour Market supermarkets
  • More than 580 Carrefour Express supermarkets

Currently, Amazon is associated in Spanish territory with the chain of DAY supermarkets offering the service Prime Now , through which DIA undertakes to distribute consumers’ food purchases within one hour. For now, this agreement is only valid for the cities of Madrid and Barcelona (and surrounding towns) and could be affected by the possible purchase of Carrefour by the e-commerce giant.

In any case, It is not the only agreement of this type that Amazon maintains in Europe: in has signed a similar alliance with the Morrisons chain.

Will Amazon break the agreement that it currently has in Spain with DIA?

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