FIRST AIRED: October 24, 2017

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Transcript

00:00:01
>> Retailers are fighting back against Amazon. I'm Reuters' Jeffrey Dastin in San Francisco. What looks like a tranquil shopping center behind me is in fact one of several battlegrounds between Target and Amazon. Big box retailers have been on edge since Amazon bought Whole Foods for $13.7 billion, earlier this year.
00:00:21
That deal gave Amazon hundreds of stores for the first time, where it can sell groceries and let shoppers pick up orders that they've made online. But Target, Best Buy and others had a little known way where they can protect their turf. Lease agreements. Often, when major retailers open new stores, they have their landlords agree not to lease an adjacent shop to a competitor or to a business that could hurt foot traffic, like a poker hall, for instance.
00:00:50
Sources tell us that Target doesn't want Whole Foods to open up shop right here at City Center Mall in San Francisco, if it adds the lockers for customers to get their goods they ordered online. And what these show, is that Amazon does not have a blank slate with which it can transform Whole Foods however it sees fit.
00:01:10
It can not turn large portions of the Whole Foods stores into fulfillment centers as some analysts expect. Rather, Amazon is bound by the lease agreements that the more than 400 Whole Foods stores signed years ago and it now has inherited.