Reports: AmazonFresh, Whole Foods, and More Consolidated Under Veteran Exec Steve Kessel
SEATTLE, WA - As the Amazon family of companies continues to grow, the retailer may be pivoting structures to a larger, umbrella-like business model, according to a recent Wall Street Journal Report. In the report, sources close to the company revealed that Amazon is likely consolidating both its physical retail and fast-delivery operations under veteran executive Steve Kessel.
Having spent some time as an Amazon exec, Kessler reportedly will take on new responsibilities with Prime Now, Amazon’s rapid-delivery operation, and AmazonFresh, the company’s grocery-delivery arm. Additionally to these roles, Kessel will now also tackle Whole Foods and Amazon’s physical book and convenience stores. According to the report, Amazon’s focus will be to reinvent consumers’ shopping habits and soften the transition across the company’s multiple platforms.
“I think over time you’ll see more cooperation and more working together between AmazonFresh, Prime Now, and Whole Foods, as we explore different ways to serve the customer,” Brian Olsavsky, Amazon’s Chief Financial Officer, noted in a quarterly earnings call late last month reported on by the WSJ.
These new responsibilities follow a career filled with innovative contributions, including seeing his brainchild, Amazon Books, come to fruition. Kessel was also instrumental in the creation of Amazon Go, the cashier-less convenience store that is still in beta testing. Additional responsibilities included work in developing the Kindle e-reader and the Fire tablet.
When Amazon took hold of Whole Foods, Kessel moved to a more grocery-focused role, reporting to Retail Chief Jeff Wilke. And more recently, Prime Now and AmazonFresh have been added to his plate. According to WSJ, analysts are saying that the industry may see a combining of its grocery operations’ supply chains and an adding of fast Whole Foods deliveries. Kessel’s leadership is displaying an acute awareness of the market, as he was reportedly responsible for the company scaling back some delivery services in specific zip codes.
“We’re going to learn with them how we can efficiently—and in a high-quality way—deliver groceries to our customers,” said Wilke in a recent interview.
These efforts come in tandem with a further incorporation of Prime Now, while seeking to fulfill its promises of lowering prices, delivering Amazon lockers, and offering Prime benefits to subscribing in-store shoppers.
As more information is revealed on the integrating companies, AndNowUKnow will continue to report.