Amazon-Whole Foods Deal Signals A Major Economic Trend

The recently announced acquisition of Whole Foods Market by Amazon is an indicator of a fact well-known by retail analysts: both Amazon and Walmart are trying to be like the other. Amazon is establishing brick-and-mortar bookstores and buying 460 grocery store locations. Walmart, through its recent acquisition of Jet.com and other moves, is strengthening its online presence and infrastructure. But the larger picture is that the retail industry is undergoing consolidation among a few big companies whose resources stretch globally, whose access to sophisticated supply lines, and advanced marketing and delivery technologies, gives them major market advantages over smaller competitors. This consolidation is happening in other industries, including banking, airlines and telecommunications. And it’s creating a real economic gulf between two groups of workers: those employed by the prosperous new super companies – and those employed elsewhere.