Amazon deal rocks retail sector

Amazon deal rocks retail sector

The $13.7 billion deal lifted shares for both companies, punished the stocks of grocery companies who now have even more reason to fear Amazon's moves onto their turf, and added a cool $2 billion to Jeff Bezos' net worth.

Online juggernaut Amazon announced Friday, June 16, 2017, that it is buying Whole Foods in a deal valued at about $13.7 billion, including debt.

Completion of the transaction is subject to approval by Whole Foods Market's shareholders, regulatory approvals and other customary closing conditions. Instacart allows some retail partners to take small investments in the company, and Whole Foods owns less than 1%, the source said.

The deal could be "transformative", Moody's lead retail analyst Charlie O'Shea said, "not just for food retail, but for retail in general".

Whole Foods, often derided as "Whole Paycheck" for its high prices, could see its reputation change if Amazon, a master at undercutting its brick-and-mortar rivals, passes any savings from automation to customers. Eleanor McCarthy, who said she lives "near Newburyport", has a son who works for Amazon in Los Angeles. Consumers are buying more from outside of traditional supermarkets. That's a significant boost in numbers for the Seattle company, which now operates fewer than 100 distribution centers in the USA, a handful of them in the Inland Empire. "It's just curious, isn't it, that Amazon has offered so many things online". They do services of various sorts, but it is unsettling, isn't it, to think of one huge company.

"It's amusing. I was just ordering something on Amazon", said Nick Yezierski, a hotel manager who was eating breakfast outside the Whole Foods flagship store in Austin, Texas. "We do have an aging population".

Groceries are already a fiercely competitive business, with low-priced rivals like Aldi putting pressure on traditional supermarket chains and another discounter, Lidl, opening its first USA stores just this week.

"It potentially turns these brick and mortar stores into distribution centers", Olson said. It caused shares of other traditional grocery giants to sink - Walmart was down 5 percent, Kroger was down 9 percent, Target was down 5 percent, and Costco was down 7 percent.

Reports swirl about Beyonce's twins, but no confirmation yet
According to Showbiz411, Beyonce had sneaked into the UCLA Medical Center in Los Angeles late Monday night to deliver the babies. There has been days of rampant speculation if the 35-year-old singer had given birth at a Los Angeles medical center.

The market reverberations of the announced deal traveled beyond the retail industry - shares of food companies like Hershey and Campbell Soup slid, too. Right now, Ahold's stock is down by almost 10%. Walmart and Target also took significant hits.

"The conventional grocery store should feel threatened and incapable of responding", Pachter said.

They have indicated that they do not plan to automate cashier jobs in the stores, .

The S&P 500's retail and food categories were hit particularly hard by the news - especially retail businesses who have expanded into the grocery realm in recent years.

Whole Foods has posted seven straight quarterly sales declines at established stores and recently overhauled its board of directors in the face of pressure from activist hedge fund Jana Partners LLC.

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

PCC has also partnered with its competitor, offering delivery through Amazon Prime Now since April previous year. "Everybody's been kind of joking that it's going to be robots and drones", Clark said of potential changes from Amazon, which uses robots in its warehouses and is testing drones for delivery.

"They (Amazon) always try to offer the best price, which is good for the customer, but not good for the brand", Motkin said.

Related Articles

  • Search for 7 Navy sailors ends after bodies found on ship

    Search for 7 Navy sailors ends after bodies found on ship

    Joseph Aucoin told reporters at a Navy base in Yokosuka , Japan , that a number of bodies have been recovered. Paul Newell said the victims may have been killed by the impact of the collision or drowned in the flooding.
    Confederations Cup: Late Moreno header salvages Mexico point, Chile start with win

    Confederations Cup: Late Moreno header salvages Mexico point, Chile start with win

    Mexico midfielder Carlos Vela got to the ball near the far post and sent it to the middle of the area for Chicharito's goal. Cristiano Ronaldo ran at the Mexican defense before finding Quaresma for an easy finish.
    Ajax promote Keizer to head coach

    Ajax promote Keizer to head coach

    Ajax have appointed Marcel Keizer as their new head coach, following the departure of Peter Bosz to Borussia Dortmund . Keizer was in charge of the reserve team at Ajax , and has now been trusted with the senior team.
  • Warmbiers Blast Obama For Not Saving Son From DPRK

    Fred Warmbier also said the family does not believe North Korea's story that " botulism and sleeping pill " caused his coma. Otto Warmbier has a severe brain injury and is in a state of " unresponsive wakefulness", his OH doctors said on Thursday.
    Is ISIS Leader Abu Bakr al-Baghdadi Dead?

    Is ISIS Leader Abu Bakr al-Baghdadi Dead?

    However, Washington said it was uncertain about al-Baghdadi's death, while western and Iraqi experts doubted the Russian claim. Moscow has a strong interest in showing that it is also fighting IS in Syria - something that has been questioned in the West.
    Claire McCaskill blasts Republicans for secret, back-door Trumpcare bill

    Claire McCaskill blasts Republicans for secret, back-door Trumpcare bill

    Those rules for the 2017 budget, intended for a health care bill, call for a $2 billion reduction in the deficit over 10 years. Harry Brown (R-Jacksonville), the ranking member of the Appropriations Committee, told ABC11.
  • Missing US sailors found dead in ship damaged off Japan: Navy

    Missing US sailors found dead in ship damaged off Japan: Navy

    The crew fought to keep the vessel from foundering or sinking so they could make it back to base. Two others were airlifted off the ship and treated in the hospital for lacerations and bruises.

    Russian Federation offering visa-free travel for football World Cup

    Russia's win eases the pressure on its second game, against Cristiano Ronaldo's Portugal in Moscow on Wednesday. The games will be held at stadiums in Moscow (Spartak), Sochi (Fisht) and at the same arena in St.
    Vladimir Putin denies interfering in the US election

    Vladimir Putin denies interfering in the US election

    "I haven't seen even once any direct proof of Russian interference in the presidential election in the United States". Putin claimed the picture pretty much demonstrates " the extent of [his] acquaintance with Mr.
  • Russian Federation  eases to 2-0 Confederations Cup win over New Zealand

    Russian Federation eases to 2-0 Confederations Cup win over New Zealand

    We're all feeling courageous and will take things on full of optimism. "This is why we play all of the hard games in the Islands". According to the draw, Group A includes Russia, New Zealand, Portugal and Mexico , Group B - Chile, Australia and Germany.
    UK: Banned building materials suspected in London fire

    UK: Banned building materials suspected in London fire

    Mrs May insisted the Government was doing everything possible to help those caught up in the tragedy. But reports on 16 June said that some Grenfell residents would be rehoused "outside the area".
    President Trump confirms he's under investigation in angry tweetstorm

    President Trump confirms he's under investigation in angry tweetstorm

    Rosenstein told a closed session of Congress last month that he learned Comey would be dismissed one day before penning his memo . In his latest tweet, the president seemed to confirm he is under investigation for possible obstruction of justice.