Online retail giant Amazon announced plans Friday to buy Austin-based grocery chain Whole Foods for $13.7 billion.
Both companies have a significant presence in Texas, making the Lone Star State a good place to test synergy, according to one marketing expert.
"I think we will be a bell-weather for what will happen around the country," said Ed Fox, marketing professor at the Southern Methodist University Cox School of Business.
"However they're going to use Whole Foods in their portfolio, you're going to see it here in Dallas," Cox said.
Shopper Earlene Garvey had a carload of groceries Friday from Whole Foods but said nothing is easier than having groceries delivered from Amazon's service AmazonFresh.
"I don't have to leave the house and they pick the produce very well," Garvey said.
Combining the two companies will give Whole Foods not just a cash infusion but access to Amazon's massive distribution system.
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Whole Foods and Amazon both have significant warehouses in Texas.
Business owner Igor Motkin is one person not happy about the merger.
"They (Amazon) always try to offer the best price, which is good for the customer, but not good for the brand," Motkin said.
He sells hunting gear online and says Amazon pushes businesses to slash prices, so he's not making enough money to grow his company.
"If you can't make a good margin you can't reinvest to make a better product," Motkin said.
Amazon's philosophy has been hard on many of its retail competitors, who have closed their doors in part because of online competition.
Now Amazon will take on grocers like Wal-Mart and Kroger.
