Amazon to Acquire Whole Foods Market for $13.7 Billion

Amazon to Acquire Whole Foods Market for $13.7 Billion

Meanwhile, the more than 460 Whole Foods stores in the U.S., Canada and the United Kingdom could be turned into distribution hubs - not just for delivering groceries but as pickup centers for online orders.

Amazon has been contemplating this takeover for some time, as they have been moving more and more into the food sector with services like AmazonFresh.

Amazon.com, Inc. (NASDAQ:AMZN) has struck a deal to acquire Whole Foods Market, Inc. "It's a good company", she said.

But mostly, online business gives shoppers choices, he said. It does well if you live in the right place. "It's a bit unsettling".

Shares of competing retailers Kroger Co., Target, and Walmart all fell Friday after the deal was announced, while Amazon shares were up by 2.4 percent.

"I think that they are a very profit-driven company, so there might be some streamlining as far as labour", said Sasha Hardin, 28, of the Mount Pleasant store, who has been with Whole Foods for 6-1/2 years. "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 US stores just this week.

After the announcement, Amazon's shares went up more than two percent and Whole Foods Market shares went up by about 28%.

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Amazon is a beast in the world of online retailers. The company had sales of about $16 billion previous year. But if customers know that what they are getting is the same as what they'd get at the local store, they are more likely to try it out.

The all-cash transaction is valued at $13.7 billion, with Amazon assuming Whole Foods' debt.

The post Amazon-Whole Foods Marriage Could Disrupt Grocery Business (NASDAQ:AMZN) appeared first on Market Exclusive. It adds that it plans no job cuts as part of the deal.

Experts tell Q13 News that Amazon's acquisition of Whole foods will make the high-end organic grocery store more affordable, lowering prices for groceries and prepared meals. "Barclays put an upside value on Whole Foods of $57, which has probably encouraged investors to bet on at least one more raise of the paddle".

Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment. The online giant has made no secret of its plans to be a physical retail giant, too, and it's already started doing grocery deliveries.

Both Amazon and Whole Foods cater to younger consumers including millennials as well as the affluent.

"We are always concerned when there is some loss of brick-and-mortar stores out there", Mullins said after just hearing of the news early Friday. Whole Foods is retaining its CEO, cofounder John Mackey, and they will continue to operate their stores independently.

The $13.7 billion deal brings to a head a years-long battle brewing between Amazon, the online darling, and traditional retail powerhouses likes Walmart.

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