Amazon Charts Future of Food Shopping with Whole Foods Deal

Amazon to buy Whole Foods Market in deal valued at $13.7 billion

Amazon to buy Whole Foods Market in deal valued at $13.7 billion

Friday's announcement that e-commerce giant would buy the Whole Foods grocery chain had major implications for grocery delivery startup Instacart, which has pitched itself for years as a way for brick-and-mortar retailers to resist competition from Amazon.

Amazon has agreed to buy the organic grocery chain for $13.7 billion, or $42 a share, in an all-cash transaction and assume the company's debt.

Shopper Earlene Garvey had a carload of groceries Friday from Whole Foods but said nothing is easier than having groceries delivered from Amazon's service AmazonFresh.

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

Amazon.com, Inc. (NASDAQ:AMZN) has struck a deal to acquire Whole Foods Market, Inc. Stone sees the possibility that Whole Foods CEO John Mackey could do what he's wanted to do, expand the chain to about 1,000 stores from its current stable of more than 460.

The move comes after activist investor Jana Partners took an 8% stake in Whole Foods in April and pushed the company to look into strategic options including a sale.

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

When Amazon approached, Whole Foods turned again to Evercore.

The almost $14 billion deal is the largest purchase in Amazon's history.

Amazon could have built up its groceries business without acquisitions, but that would have been costly and time-consuming, said Neil Saunders, managing director of GlobalData Retail.

Meanwhile, Whole Foods stock soared on the news, jumping almost 30 percent by mid-morning.

Amazon could cut costs if the technology gets good enough to deploy at Whole Foods locations. Currently, WFM operates approximately 460 grocery stores among the U.S., Canada and the United Kingdom, giving Amazon more operational points in major cities and suburbs. Then it uses sensors, computer vision, and deep-learning technology to track shoppers and what items they pick up.

With this strategy, Amazon is planning to make the prices competitive and attract "more low- and middle-income shoppers" to its retail stores, which may still be located in posh localities.

Google Shopping: Google also have ties with Whole Foods, and one possibility with the recent Amazon acquisition is transferring deliveries to Amazon, and far away from Google.

As sales have slumped, Whole Foods executives have tried to highlight what distinguishes it from rivals.

Whole Foods Market is renowned for offering the best organic and natural foods in the world-and merging its business with another world-known ecommerce giant only means more good news for consumers.

But if Amazon can be the one-stop shop for everything - groceries had been one of the key missing elements - customers would have even less of a need to go to Walmart or elsewhere. It also charges customers delivery fees.

Notícias recomendadas

  • Top Tech Executives Head to the White House

    Top Tech Executives Head to the White House

    And as one lobbyist puts it, he's probably not there to "talk about cloud computing at the Veteran's department". Trump and Vice President Pence are expected to pop-by the working sessions.
    Deux morts dans une attaque armée — Mali

    Deux morts dans une attaque armée — Mali

    En mars 2015, l'attaque contre le restaurant-bar La Terrasse avait également fait cinq morts, dont deux Occidentaux. L'attaque et la prise d'otages a visé un lieu de villégiature dimanche, en début de soirée, près de Bamako .
    Mamata Banerjee leaves for The Netherlands even as Darjeeling stir continues

    Mamata Banerjee leaves for The Netherlands even as Darjeeling stir continues

    The strike was called even after the Chief Minister assured that the new rule would not be imposed in the hill districts. Banerjee said. "I appeal to the people living in Darjeeling and nearby areas to remain calm and peaceful".
  • Taurasi stands alone atop WNBA scoring list

    Taurasi stands alone atop WNBA scoring list

    Taurasi, averaging 18.1 points this year, passed Tamika Catchings for second on the WNBA scoring list early this season. She said in the weeks leading up to the historic points that she wasn't thinking about the record.

    Parametric Portfolio Associates LLC Increases Stake in Williams-Sonoma, Inc. (WSM)

    Finally, Oppenheimer Holdings, Inc. reiterated a "hold" rating on shares of Williams-Sonoma in a report on Thursday, March 16th. On average, equities analysts expect that Williams-Sonoma will post $3.56 earnings per share for the current fiscal year.
    79 now believed to have died in London high-rise fire

    79 now believed to have died in London high-rise fire

    Construction for the building was completed in 1974 and it underwent a renovation that was completed in May 2016. He said the situation has become an emergency and that "all assets" should be brought to the table.
  • Firefighters Set Containment Goal For Blaze Near Brian Head

    Firefighters Set Containment Goal For Blaze Near Brian Head

    Nine hundred fifty seven acres (one acre equivalent to a football field) have burned, and 750 people have been evacuated. However, she said crews expect hot and dry conditions that won't give them much help in suppressing the fire.
    Apple iPhone 8 accessories already up for pre-orders

    Apple iPhone 8 accessories already up for pre-orders

    At the top, a complex array of front-facing cameras, as well as fingerprint sensors, will take up a portion of the screen. The MobileFun image, which was earlier reported on by BetaNews , shows an iPhone that comes with all of those features.
    Chelsea To Hijack Man Utd Deal For Real Star?

    Chelsea To Hijack Man Utd Deal For Real Star?

    Their need is even more pressing after Zlatan Ibrahimovic's departure, with the 35-year-old having netted 17 of those goals. Morata has reportedly agreed terms with United, but Abramovich has given the go ahead to join the battle for his signature.
  • Bihar Board to announce class 10 result on 20 June 2017!

    Bihar Board to announce class 10 result on 20 June 2017!

    There is no notice nor any press release from the Board to confirm the declaration of the Bihar Board Class 10 Results tomorrow. The Bihar School Examination Board ( BSEB ) is likely to declare its Class X matriculation exam results on 20 June.
    Celtic fans react to controversial Champions League draw

    Celtic fans react to controversial Champions League draw

    Being realistic, I don't think there would be any chance of us beating them. "If you are playing Celtic these days you're up against it".
    Le MR prêt à dialoguer sur l'avenir des entités fédérées

    Le MR prêt à dialoguer sur l'avenir des entités fédérées

    Il répond ainsi à l'appel du président du cdH Benoît Lutgen à former des majorités sans le PS en Wallonie, à Bruxelles et en Fédération Wallonie-Bruxelles.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.