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Amazon is planning to acquire Whole Foods for $13.7 billion, but if it really wants to shake up the grocery sector, it should consider buying discount stores, according to one analyst.
“If the goal is to fully compete against Wal-Mart (and the low-end), then could Dollar General be next on Amazon’s buying list to go after an arguably larger part of the U.S. population?” Gordon Haskett retail analyst Chuck Grom wrote in a research note Friday.
The Whole Foods acquisition gives Amazon the ability to attract customers that it already has, Grom wrote.
The majority of Amazon Prime members earn an annual income of over $100,000. Whole Foods appeals to a similar demographic.
To go after a larger portion of the population, Amazon needs to look at buying discount stores, Grom said.