Amazon's Acquisition of Whole Foods to Impact North Texas
- Author: Zachary Reyes Jun 17, 2017,
Jun 17, 2017, 5:48
On the flip side, Amazon could use Whole Foods stores as pickup locations for deliveries, an option Amazon already offers in many cities by installing lockers at 7-Eleven and other retailers. Amazon just bought Whole Foods in a $13.4 billion deal, and it's a win for both companies.
"This deal should leave no doubt that Amazon is deadly serious about dominating all aspects of retail", Cuatrecasas said.
Hetu said Amazon isn't likely to bring that to Whole Foods right away but could deploy pieces of it to further cut costs.
Combining the two companies will give Whole Foods not just a cash infusion but access to Amazon's massive distribution system.
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. Customers simply scan a credit card or digital wallet upon arrival and then walk out of the store with the grocery items that they've selected.
Whole Foods has had a reputation of high prices and has been derided sometimes as "Whole Paycheck". I don't think there's any direct Amazon Whole Foods direct competition. On the Whole Foods Market, Bezos said million love this food chain giant as they offer natural and organic food. Perhaps there could be a separate portal launched on the company's online page, where customers could be directed to a whole different area to purchase groceries online.
Grocery store stocks tumble: After the sale was announced Friday, investors dumped stocks of major retailers and grocery store operators. What has been Whole Foods' gain has proven to be the rest of the industry's loss, however; stocks for other supermarket chains reportedly plummeted at the news, reflecting uncertainty about what the move will mean for Whole Foods' competitor brands. Kroger sank 11.48 percent, while Costco dropped 5.64 percent. Amazon is going to pay $42 per share to Whole Foods Market and it accounts for a premium of 27%.
Small-company stocks fell more than the rest of the market.
Mackey will stay as CEO, and the headquarters will stay in Austin, Texas. In recent years, Amazon has shown an interest in entering the grocery market and experimenting with innovative brick-and-mortar locations.