Amazon to buy upmarket grocer Whole Foods for $13.7 bln

Amazon to buy upmarket grocer Whole Foods for $13.7 bln

So what if you could get Whole Foods products or other groceries delivered to your door?

Inc just announced a deal to purchase Whole Foods Market Inc for US$13.7 billion, marking a move into the realm of brick-and-mortar stores that is already sending shockwaves through the economy.

A crowded local grocery market became more interesting - and probably more competitive - as online retail powerhouse Amazon announced Friday that it will buy organic foods specialist Whole Foods, which now has stores in Washington Twp., Mason and Cincinnati.

The coming years are likely to see a lot of disruption, not only from Amazon but from traditional grocers shifting more sales online.

Yesterday, Amazon stunned everyone when it revealed that it had agreed to buy out Whole Foods Market for a monstrous sum of close to $14 billion.

"Make no mistake, Walmart under no circumstances can lose the grocery wars to Amazon", said Brittain Ladd, a strategy and supply chain consultant who formerly worked with Amazon on its grocery business.

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. "Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades - they're doing an unbelievable job, and we want that to continue".

Whole Foods, founded in 1978, has more than 460 stores in the United States, Canada and the United Kingdom, employs 87,000 people and is the leading natural and organic foods supermarket. Whole Foods even installed features in some stores meant to make Instacart shoppers' work faster and easier.

In Whole Foods, it is acquiring a company that has recently come under pressure from investors for its lagging performance. "You have to pick and choose what you buy".

Barclay's analyst Karen Short today noted that another offer could be placed on the table for Whole Foods, prompting her to raise her stock price target for Whole Foods to $48 per share.

"I love the prepared foods and the produce", Hiddeman said.

On Friday, June 16, 2017, online retailer#Amazon announced its plans to purchase #Whole Foods.

"They really want to be communicated with the way they want to be communicated with", Hauptman said. Cuatrecasas said Amazon's acquisition will set a precedent that other online companies are likely to follow. "The impact could be vast and generational".

With the Whole Foods acquisition, analysts anticipate that Amazon will be the third largest retail grocery, behind Wal-Mart and Kroger, by 2021. Kroger Co shares fell 9.2 percent, while Walmart stores Inc saw a loss of 4.7 percent.

Yet the prospect of Amazon knowing more about San Jose's Dave Dineen, 55, who works as a dog walker, didn't faze him.

Shares of iconic food-staple companies also took a hit.