Amazon to Buy Whole Foods For $13.7 Billion in Cash

Cornelia Mascio
Giugno 20, 2017

But analysts familiar with e-commerce and retail said the ramifications will be felt throughout both industries. The total value of Amazon's offer stood at $13.7 billion, marking the largest acquisition offer in Amazon's history.

But Whole Foods, which has been feeling the heat to bolster its stock for more than a year, has a new owner with cash to burn, significant technological expertise, and a willingness to invest aggressively in a quest for dominance of a brand new sector.

Amazon's acquisition of Whole Foods Market sent the stocks of grocery store operators and other companies that compete with Whole Foods plunging Friday.

The deal would give Amazon control of 430-plus U.S. Whole Foods stores, almost all of which are in neighborhoods more affluent and younger than America as a whole, noted David Portalatin, the NPD Group's vice president of food industry analysis. "You have to pick and choose what you buy".

Kyle Bunch is with R/GA, a marketing, advertising and consulting firm right across from the Whole Foods headquarters.

"I don't want to lose what Whole Foods is now", said Ein.

Whole Foods wove its way into the crowded and competitive Dayton grocers market in 2015, with its first Dayton-area store, in Washington 1050 Miamisburg-Centerville Road.

"I love the prepared foods and the produce", Hiddeman said. "I don't think we'd be interested".

Following the announcement of Amazon's plan to purchase Whole Foods Market, Inc. "This deal gives them credibility with consumers and a major foothold in that space".

Some workers at the nonunion grocery chain wondered whether Amazon, known for its hard-driving culture, would mean big changes to their pay, benefits or employment. "The impact could be vast and generational". Target shares shed 5.14 percent of their value to end the trading session at $52.61.

Now Amazon will take on grocers like Wal-Mart and Kroger. Shoppers skip the checkout line, and their Amazon accounts get automatically charged.

Yet the prospect of Amazon knowing more about San Jose's Dave Dineen, 55, who works as a dog walker, didn't faze him. Jana had pushed to shake up Whole Foods' board of directors, among other changes. "I don't personally like the Big Brother aspect, but that's the world we live in".

Pressure from activist investors got so high that Whole Foods CEO John Mackey told Texas Monthly magazine recently that "they're greedy bastards, and they're putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods, because it's in their self-interest to do so".

Stanford University Marketing professor Wesley Hartmann said quality may not slip if the takeover comes to fruition because Amazon is incredibly efficient, while industry analysts have said Whole Foods is not.

SELYUKH: Rich Tarrant is the CEO of MyWebGrocer, a company that helps grocery stores sell products online. He expects the retailer to keep the Whole Foods stores open and eventually even make grocery deliveries via drone.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE