It does make sense because that is Amazon's modus operandi. They are the Walmart of online shopping; one place for everything and it's cheap too. They don't really associate themselves with quality or try to win over those brands, in fact luxury brands have fled from Amazon for a while now.

(See: https://qz.com/807419/is-it-even-possible-to-sell-luxury-on-..., among other articles that you can find from googling.)

But I agree that it's very strange that Amazon is buying Whole Foods, which is a luxury grocery store, to then try to replicate Walmart. This will just alienate the customer base and drive them to Traders Joes, Coops, etc.