Amazon to buy Whole Foods for $13.7b

Amazon to buy Whole Foods for $13.7b

Amazon has announced it is acquiring upscale grocery chain Whole Foods in a deal valued at $13.7 billion.

“Think about human nature and how most people deal with dinner”, she said.

- Sysco. The food distributor sank $1.15, or 1.2 percent, to $54.38. Whole Foods will keep operating stores under its name.

Online delivery of groceries so far has been tough for any company to pull off because of customers’ concerns about the quality of meat and produce, Wedbush Securities analyst Michael Pachter said.

Whole Foods has had a reputation of high prices and has been derided sometimes as “Whole Paycheck”. Kroger, the nation’s biggest supermarket chain, had earlier warned Wall Street of disappointing earnings. The Journal estimated that the Amazon announcement had wiped almost $29 billion from the aggregate market cap of rivals in the grocery category. “It’ll be interesting to see what [technological innovations] they choose to pull forward into a larger-scale brick-and-mortar environment – which pieces are most resonant for shoppers and consumers”. Whole Foods, whose fleet of stores now numbers more than 430 locations, has found it hard to attract more mainstream consumers as Walmart and other large chains have stepped up their sales of natural and organic products.

Yes. The world’s largest e-commerce company is now a very substantial brick-and-mortar food retailer.

Whole Foods sent a letter to customers after the merger announcement, calling the agreement a new chapter in Whole Foods’ history and an incredible opportunity.

The deal still needs to gain regulatory approvals and is subject to a Whole Foods shareholders vote.

The deal represents a dramatic turn in strategy for Amazon, which has offered food delivery through its AmazonFresh service for a decade, but has not made a major dent in the $700bn grocery market.

When Jana Partners LLC in April said it had raised its stake in Whole Foods in April and pushed for a sale of the company, Whole Foods interviewed several investment banks to hire an adviser to help defend against the activist hedge fund.

But mostly, online business gives shoppers choices, he said.

The grocery store business has been rapidly changing, but today that change just might have gone into overdrive.

Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.

Amazon could also get a better picture of customers by marrying data from Amazon and Whole Foods’ loyalty programs.

That was feeling of Taylor Malooly, 19, a University of Texas student at Whole Foods in Austin, who said a Whole Foods delivery service would have to be fast if he were to try it.

John Mackey will remain CEO of the company.

Amazon is already nearly dominating retail – the company’s market share of the US retail sector a year ago was estimated at 34 percent, while Walmart came second with 5 percent, according to Needham & Company’s research in April.