Amazon buying Whole Foods for $13.7 billion


For Inc., the blockbuster $13.7 billion deal to buy Whole Foods Market a giant step toward dominating every part of a consumer's shopping experience. As more and more grocery stores have begun offering organic produce, Whole Foods is no longer people's only option.

A Moody's analyst described the Amazon-Whole Foods deal as a "transformative transaction, not just for food retail, but for retail in general".

The S&P 500 market capitalization loss for just 20 stocks in the retail and food sector was $37.7 billion by Friday afternoon, according to CNBC.

With a $13.4 billion purchase, Amazon is stepping up its game and hoping to get an even stronger foothold in the retail market.

Some shoppers worry about the quality of their produce and say they're rather pick their pears themselves. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market's headquarters will stay in Austin, Texas.

Blooming flowers brighten the entrance to a Whole Foods Market on Friday in Indianapolis. "We'd like to see what we're buying", he said. But when buying food, she said she is "really picky" and would never shop online for items such as vitamins and meat. Moreover, the analyst believes that the announcement has far-reaching consequences for all food retailers as well as the retail space as a whole. Overall, the company's USA online sales rose 63 percent last quarter. So there's lots of room to grow. Those stores solve much of Amazon's "last mile" delivery challenge for fresh groceries.

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.

And this headline from Business Insider helps explain it: Amazon is acquiring Whole Foods - and Walmart, Target, and Kroger should be terrified. But it has been struggling to find a profitable model.

Despite Amazon's reputation for harnessing technology, a prototype store inside its corporate office in Seattle, called Amazon Go, which uses sensors and tech-savvy cameras to detect shoppers' selections and then charge their Amazon accounts, has rolled out more slowly than planned, a person familiar with the matter said.

Both Amazon and Whole Foods cater to younger consumers including millennials as well as the affluent.

"If you are Kroger, you're looking down the barrel with this one", said Hugh Tallents, a partner at management consultancy cg42.

"It's pharmacy. It's having the ability to put stores that are similar to Apple stores inside Whole Foods", he said.

"I like picking out my own stuff", Hall said.

Adrienne Anderson, at a Whole Foods in Savannah, Georgia, says she shops at Whole Foods nearly exclusively for meat and fresh produce "because of the quality and selection" and because fruits and vegetables are locally sourced.

"Instead of deliver to my home, why not just come down here?" Indeed, shares in competitors sank in early NY trading. Leave a comment and tell us your thoughts.