Amazon buying Whole Foods in bold move into brick and mortar

Trump restores some Cuba penalties, rejecting 'oppressors'

Trump restores some Cuba penalties, rejecting 'oppressors'

"This deal has dramatically flipped the table on traditional companies".

Well, we certainly weren't expecting to hear this morning that Amazon plans to acquire Whole Foods for $13.7B.

Shares of many grocers and retailers slumped Friday after Amazon announced a $14 billion deal to buy high-end grocery chain Whole Foods Market. "Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades".

Whole Foods Market is a leading natural and organic foods grocer, but has been widely known for high prices and under pressure from fierce competitions. The company agreed to spend $13.7 billion to buy the grocery store chain Whole Foods Market, which has more than 450 stores, mostly in the United States.

That, in turn, could help Amazon do better with pricing and promotions, branding and the overall store experience, said Robert Hetu, a retail analyst at Gartner. In order for Amazon to get the volume growth they are looking for, fresh foods has to be part of the equation.

The relationship between Instacart and Whole Foods dates back to 2014 but deepened in 2016, when they announced a new five year deal.

Amazon also has dealt with technology problems at a prototype store inside its corporate office in Seattle, called Amazon Go, where sensors and tech-savvy cameras detect what shoppers pull off the shelves and charge their Amazon accounts when they leave, people familiar with the matter said. Kroger, which had been rumored late past year to be considering a takeover of Whole Foods, was down 14 percent. Meanwhile, shares of Whole Foods rose almost 30%, while the Amazon stock was up over 2%.

"Coles and Woolworths seem to charge fairly high prices, so if someone was to come in with a premium offering like Whole Foods, then they're not trying to battle into a market where people are used to paying extremely competitive prices", he said. The company reshuffled its board and appointed a new chief financial officer in May after reporting the seventh-straight quarter of falling same-store sales, a key indicator of retail performance.

Amazon said today it's buying the supermarket Whole Foods in a deal valued at almost $14 billion.

Pachter said that even if Amazon gets 20 million members of its Prime loyalty programme to pay US$15 a month extra for AmazonFresh grocery-delivery service, that's 20 million not going to traditional supermarkets.

To that end, Whole Foods supermarkets will continue to operate under their current brand, with their co-founder and CEO, John Mackey, talking about increasing shareholder value and the "innovation" the deal could bring to customers.

Whole Foods now has 430 stories, but after the acquisition, they will have 350 million stores because they will be on every desktop, Feinberg says.

"That (Whole Foods 365) may become a big problem for Wal-Mart", Grant said.

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