Amazon shakes up retail with $13.7bn Whole Foods deal

Kroger, the nation's biggest supermarket chain, had earlier warned Wall Street of disappointing earnings. The Journal estimated that the Amazon announcement had wiped almost $29 billion from the aggregate market cap of rivals in the grocery category.

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.

"This partnership presents an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers", Mackey said.

Whole Foods accounts for just 1.2 percent of the U.S. food and grocery market share, while Amazon has just 0.2 percent, according to research firm GlobalData Retail.

In the $13.7 billion, all-cash deal, Amazon will buy the Texas-based champion of organic and specialty food for $42 a share.

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.

More news: 29-year old Indian actress found dead at her Mumbai residence
More news: White House committed to anti-Russian sanctions - spokesperson
More news: U.S. fighter jet downs Syrian plane in Raqqa province

"It's amusing. I was just ordering something on Amazon", said Nick Yezierski, a hotel manager who was eating breakfast outside the Whole Foods flagship store in Austin, Texas. That is the eighth Amazon bookstore now open around the US and more are expected in the future.

Whole Foods, which will keep operating stores under its name, said in an email to customers that it will maintain the same standards under Amazon, including bans on artificial flavors and colors and antibiotics in hens producing its eggs.

By joining forces with Amazon, Whole Foods gains access to an entirely new distribution channel - which should be good news for anyone hoping to shop for organic kale online.

After the Whole Foods announcement, stock prices for Wal-Mart, Target and Costco sank. While it's competitor Wal-Mart has announced a Dollars 3.3 Billion for a year ago and UD 310 Million for internet apparel retailer Bonobos, Amazon wanted its customers to visit the store physically to but fruits, vegetables and meat. Whole Foods has seen its sales slump and recently announced a board shake-up and cost-cutting plan amid pressure from activist investor Jana Partners. Pachter said Amazon might get customers over those fears if they know the delivered items are the same as those they would find at the local store. According to multiple reports, Whole Foods also invested in Instacart. Anderson advised Whole Foods alongside senior Evercore bankers Eduardo Mestre and William Hiltz.

Supermarkets now have to compete for prices with a retailer like Amazon, aside from each other and grocers like Walmart and Target, and Amazon has the financial capacity to price aggressively.

Whole Foods customers who are Amazon Prime members, meanwhile, could get discounts on certain products. CEO John Mackey will also retain his job.

Like this


21 June 2017
Woman found guilty of involuntary manslaughter because of her text messages
Medwed said the judge could consider Carter "morally blameworthy", but "moral blame doesn't always equal legal accountability". During her trial, Carter's defense team argued that Roy would have committed suicide with or without Carter's urging.

21 June 2017
Bihar School Education Board Class 10 result likely to be declared today
There has been strong criticism for the remarkably low pass percentage of 35 percent in the class 12 board examination results. Now it is a dicey situation for the board to release the result tomorrow, because of new evolution.

21 June 2017
Chiefs 6 - 34 British & Irish Lions: Timely win in Waikato
Against a weakened Chiefs team, the Lions played phase rugby, 20 at a time, sucking the energy out of their hosts in Hamilton . When quizzed again on blocking, the Lions boss insisted however that his coaches had not been whinging to the officials.

20 June 2017
Cuba rejects new US policy, saying pressure will not work
But he won roars of approval and cries of 'Viva Cuba libre!' from the invited crowd of Cuban-Americans and Cuban exiles. On the stage of failed governments, limited human rights and manipulated currency, Cuba's diplomatic buddies are stars.

20 June 2017
Scientists Celebrate Discovery Of 10 New Planets That Could Have Life
Kepler's main mission ended in 2013 after the failure of two of its four wheels that control its orientation in space. Scientists with the mission expect that Kepler's K2 mission will continue until sometime in 2018.

19 June 2017
Friend says Trump is considering 'terminating' Mueller
Adam Schiff (D-CA) suggested it could lead Congress to re-establish an independent counsel statute and reappoint Mueller. Ruddy agrees that the move would be a wrong move, but dismissed the investigation Mueller is overseeing.

19 June 2017
How to Sign Up for iOS 11 Public Beta
From there, you will have the ability to slide a bar from grey to green to enable Offload Unused Apps, or to turn the feature off. Furthermore, another user named Dave Schukin revealed that the drag and drop feature for iPhone is coming with iOS 11 .

18 June 2017
Britain-EU Brexit talks to start Monday as planned
But following the general election last week, when May lost her overall majority in the House of Commons, there have been growing calls for a softer Brexit .

17 June 2017
EC issues notification for President's election
Elected members of the Lok Sabhaand the Rajya Sabha and elected members of state legislative assemblies constitute 'electors. The Election Commission on Wednesday issued notification for the presidential poll scheduled to be held on July 17.

17 June 2017
Former FBI chief due to testify before the Senate Intelligence Committee
Executive privilege can not be used to "cover up government misconduct", said Andrew Wright, a professor at Savannah Law School. Trump undercut that narrative just days later by saying he dismissed Comey in part because of the " Russia thing".