Amazon buying Whole Foods in bold move into brick and mortar

Thursday, 22 Jun, 2017

Now Amazon will take on grocers like Wal-Mart and Kroger. But she would never buy food online, she said. But if customers know that what they are getting is the same as what they'd get at the local store, they are more likely to try it out.

The deal sent shockwaves across the food distribution market, as Whole Foods' peers and supermarket chains grappled with the prospect of having to compete with Amazon's massive buying power and ability to sell goods at a lower cost. With a $13.4 billion purchase, Amazon is stepping up its game and hoping to get an even stronger foothold in the retail market.

John Meyer, a portfolio and security analyst, said a "price war" between brick and mortar stores is already occurring. Ask potential Amazon competitors in the form of Walmart or Costco.

Walmart has been trying to address some of those online threats, pushing harder into online to build on its strength in its stores and groceries.

Whole Foods customer Bethany Capels, 34, of Mendenhall, Miss., loads her Whole Foods Market purchases in her auto in Jackson, Miss., Friday, June 16, 2017.

Here's a look at some of the big moves in the stock market following news of Amazon's acquisition of Whole Foods Market. The same goes for Shipt, an Alabama-based grocery delivery service that's also a Whole Foods partner.

The buy marks Amazon's largest acquisition to-date.

Whole Foods' conversations with banks took place before the company was approached by Amazon, so Goldman was also vying for a role with Whole Foods.

The deal had a dipping effect at the shares of other supermarkets, food producers, payment processors and shopping malls collectively of around $35 billion in United States market value on Friday as they received the news of the deal.

"This is an natural disaster rattling through the grocery sector as well as the retail world". The store uses sensors to track items as shoppers put them into baskets or return them to the shelf.

"Amazon's brutal vision for retail is one where automation replaces good jobs".

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.

Whole Foods made its name by promoting and selling organic and nontraditional brands of groceries, usually priced at a premium over what shoppers could find at traditional grocery stores such as Lucky, SaveMart and Safeway. The stock is up more than 31% so far this year. Walmart is very much taking on Amazon and utilising its network to develop ecommerce and click & collect at its thousands of stores.

"I want to see food items up close before I buy them", said Andy Pritikin, of Livermore, who was shopping at the Whole Foods in Dublin.

It's not yet clear how its drone delivery program or Prime one-day delivery could change Whole Foods.