Whole Foods Markets to be Acquired by Amazon

A Wall Street sign near the New York

Amazon is making a bold expansion into physical stores with the $13.7 billion deal to buy Whole Foods, setting the stage for radical retail experiments that could revolutionize how people buy groceries and everything else.

Belpointe Chief Strategist David Nelson told CNBC that the acquisition of Whole Foods will give Amazon.com, Inc. "It still has the option to stand up its own Amazon-branded stores from the ground up".

Apparently longtime CEO John Mackey will stay the CEO and the headquarters will stay in Austin.

The deal, expected to close in the second half of this year, gives Amazon - which has been experimenting with various physical store concepts to make establish itself as a food purveyor - an instant expanse of 460 high-end stores across the US, in Canada and in the United Kingdom. Instacart has also expanded its partnership with CVS in recent months, in addition to striking new partnerships with other grocery chains.

"Large grocery stores like Kroger and Albertsons will be especially affected", said Madeline Hurley, senior analyst at IBISWorld.

In a news release, Amazon said it would acquire the upscale supermarket chain for $42 a share in an all-cash transaction that includes that company's net debt, Efe news reported.

Amazon "will be able to compete with large grocers through multiple channels", Hurley said.

For Amazon, the Whole Foods acquisition does more than just leapfrog over the technical difficulties it has had in implementing its grocery plans.

Читайте также: Kellyanne Conway's Husband Rips Into Trump's Travel Ban On Twitter

"Amazon didn't just buy a grocery retailer". Walmart sold 17.3% of the country's groceries, while Kroger sold 8.9%, according to Bloomberg data. This trend is expected to accelerate into 2017.

Alina Gura of Newington who was visiting the Whole Foods store with her almost two-year-old daughter, said she appreciates the quality of the food, particularly its organic products. Amazon closed up 2 percent. Analysts say the Whole Foods footprint and distribution channel could theoretically make 5-minute deliveries a reality. Perhaps one day Whole Foods will even shed its derisive nickname: Whole Paycheck.

Amazon tends toward competitive pricing, while some of Whole Foods' products are so expensive the company has been dubbed "Whole Wallet".

Projected cost of Whole Foods purchase by Amazon.

Whole Foods recently had come under pressure from activist hedge fund Jana Partners LLC, prompting it to overhaul its board.

Take the restaurant sector, where customer traffic is flat, digital orders are up 45 percent over the last two years.

Amazon could also get a better picture of customers by marrying data from Amazon and Whole Foods' loyalty programs. There could be all kinds of initiatives to repurpose the brick-and-mortar store.

Dylan: But there's definitely a lot more going on here than the fact that Whole Foods has 30 locations in MA.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related:

  • New anti-Iran sanctions, United States  intrinsic animosity toward Iran

    New anti-Iran sanctions, United States intrinsic animosity toward Iran

    Like Iran , Qassemi said , the other parties to the JCPOA need to remain committed to obligations under the worldwide accord. Velayati named Washington's defeats against the Islamic Republic in Syria and Iraq as the ulterior motive behind the move.
    Ryan Reynolds Shares First Deadpool 2 Set Image

    Ryan Reynolds Shares First Deadpool 2 Set Image

    Deadpool 2 is set to come out sometime in 2018, with Josh Brolin coming into the fold as Cable and Zazie Beetz as Domino . The same photo was posted on Instagram with a nice shot taken at the X-Men's Beast: "Dropped by X-Mansion".

    Trump tweets again, in defense of his tweeting

    ABC said Rosenstein told Associate Attorney General Rachel Brand she would have authority over the probe if he were to step aside. Rosenstein, who would be responsible for actually dismissing Mueller, told U.S. lawmakers he would fire him only with good cause.
  • Anti-Kremlin protesters fill Russian streets, Putin critic Navalny jailed

    Anti-Kremlin protesters fill Russian streets, Putin critic Navalny jailed

    Financial corruption by the Russian government "is costing the future of our young people", one protester told the AP. Russian opposition leader is seen getting into a police auto as he was detained in front of his home on Monday.
    Summerhays takes advantage of Dufner collapse at Memorial

    Summerhays takes advantage of Dufner collapse at Memorial

    I made some nice pars and rolled in some putts. "So I kind of burned some steam off on the range and got it out of my system. He fired his second shot at the par-four 18th, his ninth hole of the day, from 175 yards out in the centre of the fairway.
    Killing of Kashmiri policemen a cowardly act: Jaitley

    Killing of Kashmiri policemen a cowardly act: Jaitley

    The normal life in Valley, meanwhile, was disrupted by the shutdown called by separatists and restrictions imposed by authorities. Two civilians, including a teenager also died after they were caught in the cross-fire between militants and security forces.
  • Fate of program to protect young immigrants still undecided

    Fate of program to protect young immigrants still undecided

    DAPA affected certain undocumented immigrants who are the parents of children who are US citizens or legal residents. Both moves scored points with the conservative base that elected Trump, particularly the immigration initiative.
    I couldn't have shot any higher - Johnson after missing US Open cut

    I couldn't have shot any higher - Johnson after missing US Open cut

    It's just that you've got to keep it in the short grass, out of that fescue, don't make any bogies. "The fairways are wide enough. Open lost a lot of star power Friday, with the top three players in the world rankings missing the cut at Erin Hills.
    Thomas makes charge up US Open leaderboard

    Thomas makes charge up US Open leaderboard

    Thomas, who shot a 59 and has three victories this season on the PGA Tour, also moved into the lead with his putt at 18. JUSTIN THOMAS LIT up Erin Hills with a record-breaking round on Saturday, charging into sole possession of the U.S.
  • Deputy AG: No cause to fire special counsel Mueller

    Deputy AG: No cause to fire special counsel Mueller

    The next major meeting for House and Senate Russia investigators is with Mueller himself, the first since he was appointed. But Rosenstein, too, may ultimately have to hand off oversight given his role in Trump's decision to fire Comey.
    Mistrial declared in Bill Cosby case after jury deadlocks again

    Mistrial declared in Bill Cosby case after jury deadlocks again

    Count 1 alleges that Cosby didn't have consent when he penetrated Constand's genitals with his fingers. Constand is one of many women accusing the 79-year-old of drugging, coercion, and assault.

    Mysterious ship crash off Japan leaves 7 US sailors missing

    Two others were hurt along with the USS Fitzgerald's commanding officer Bryce Benson, the military said in a statement. Family members are frantically seeking news, appealing via social media for sailors aboard the ship to get in touch.

Comments

Latest news

In 98-2 vote, Senate passes tougher sanctions on Iran, Russia
Putin seems content to sit back and watch as America tears itself apart with partisan witch hunts and hatred of the president. They blocked US companies such as Exxon Mobil, where Tillerson was chairman, from investing in such projects.

Missing mom found in Athens after allegedly abandoning 4-year-old daughter
The woman who allegedly abandoned her four-year-old daughter with two strangers at the Atlanta airport has been found by police. Maranda Harvey, 29, was found at the Graduate Hotel after police received a 9-1-1 call from the business.

Trump's Washington hotel saw nearly $20 million in revenue
Mr Trump still owes more than $100 million to Deutsche Bank and a similar amount to a New York-based real estate investment trust. The disclosure also shows Trump earned almost $20 million from the Trump International Hotel in Washington, D.C.

EU's Brexit negotiator puts pressure on UK
On Brexit , Mrs Foster said the DUP wanted to see "a sensible Brexit and one that works for everybody". The opening was set to take place on Monday, but was delayed amid negotiations.

Britain's May confident on power-saving deal, to open parliament next week
The Conservative source said: "We're confident of getting an agreement, we're confident that the Queen's speech will be passed". Britain will be the first member state ever to leave the bloc.

E3 2017: Microsoft isn't making a profit on the Xbox One X
Ybarra replied back to a fan asking if the current Software Development Kit for the Xbox One X is complete or are they still working on it.

US Senate votes near unanimously for Russia, Iran sanctions
A day earlier, the Senate voted to adopt an amendment to the bill that would expand sanctions against Russia , CBS News reported . The White House has not yet released a statement on the president's reaction to the sanctions bill .

Doctor treating Scalise hopes for 'excellent recovery' despite critical condition
House Majority Whip Steve Scalise looks like he will make an "excellent recovery", doctors say - but that wasn't always the case. The alleged gunman, James Hodgkinson of Belleville, Illinois, died shortly after the incident following a shoot out with police.

Weak inflation erodes conviction at Fed on rate hikes
Janet Yellen's decision reflects growing confidence in the United States economy and its strengthening job market. Fed officials on Friday signaled that doubts are simmering.

Russia prepares for World Cup stress test in Confederations Cup
PETERSBURG, Russia (AP) - What Vladimir Putin wants, Vladimir Putin tends to get. Petersburg, whereas the third place play-off will be held in Moscow.

'Morning Joe' Crushes Newt Gingrich for Pushing 'Grotesque' Robert Mueller Conspiracy
He specifically cited a Harvard study showing that Trump received 93 percent negative coverage from certain media outlets. The President's ally, and former speaker of the house Newt Gingrich , says he needs to reign in his online outbursts.

Warriors to decide on White House visit 'when and if necessary'
The group that recruited Durant in the Hamptons that day last summer has the same philosophy about winning more championships. Those people include President Obama and his former high school girlfriend.

Hawaii enacts law to align goals with Paris climate accord
Mayors from Kauai, Maui and the Big Island also signed a commitment to follow the goals outlined in the Paris agreement. Hawaii County Managing Director Wil Okabe was present on behalf of Mayor Harry Kim.

Still going strong at 41, Johnson agrees to 3-year extension
The deal will keep the seven-time NASCAR champion with the No. 48 team through 2020. Knaus has guided Johnson throughout his Hendrick career.

List of Republican congressmen found with baseball practice shooter
Contacted by AL.com on Friday, Brooks said he has been told to refer all questions to the Capitol Police for comment. Hodgkinson sprayed rifle fire at Republican congressmen on Wednesday as they practiced for a charity baseball game.

Other news