Amazon Dumps $230M into Whole Foods Expansion

Amazon is investing more than $230 million in its Whole Foods Market business over the next year, as part of an effort to expand the grocery store chain's presence and improve working conditions for employees.

The investment will support the opening of over 100 new Whole Foods stores, as well as the conversion of some Amazon Go and Amazon Fresh locations into Whole Foods outlets. This comes as Amazon's broader physical-store business has seen revenue growth slow for four consecutive quarters.

Average hourly pay for Whole Foods store workers will rise above $21, with total compensation topping $29 an hour including elected benefits. The company is also expanding access to Amazon benefits and Career Choice, a program that helps employees pursue higher education or vocational training.

The investment in Whole Foods comes as the chain has seen significant growth since Amazon's acquisition in 2017, with sales increasing by over 40% and the number of locations rising to over 550. However, the company's physical-store business overall has seen revenue growth slow, raising questions about its long-term prospects.