Importance of a theorem of Chevalley

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There is the following Theorem of Chevalley:

Let $k$ be a field and $A$ a finite-type reduced $k$-algebra. Then for any $\mathfrak p\in \mathrm{Spec}(A)$ the ring $\hat{A_{\mathfrak p}}$ is reduced.

I would like to learn why this theorem is important, and how it is related to other results. Is it important because it shows that $\mathrm{Spec}(\hat{A_{\mathfrak p}})$ is a variety "in the classical sense"?