prensaestatal.com
prensaestatal.com Octubre 18, 2017


Amazon to buy organic grocery store Whole Foods for $13.4 billion

18 Junio 2017, 12:23 | Martinez Canez

Goldman Sachs CEO Lloyd BlankfeinMore

Goldman Sachs CEO Lloyd Blankfein

Jana Partners, the hedge fund that Whole Foods Market Inc Chief Executive John Mackey lambasted as "greedy bastards", stands to make roughly $300 million (NZD$413 million) from the sale of the grocery chain to Amazon.com Inc.

Although Amazon has been dabbling in the fresh produce arena in certain American markets recently, the acquisition of Whole Foods has upset the traditional groceries industry and also impacted food supply companies. Mr. Bezos could easily extend the benefits of his company's popular Prime membership into goods and services at grocery stores, thus giving them additional reason to buy even more from Amazon. The parties expect to close the transaction during the second half of 2017.

Amazon, started in Seattle in 1994 by Bezos, a former hedge fund manager, has grown into the world's biggest diversified online retailer, with a market capitalization of almost $500 billion. Its curbside pickup of online grocery orders is now in more than 600 of its 4,700 US stores. Amazon lost $7 billion subsidising deliveries past year. Hetu said Amazon could make pertinent offers to attract shoppers of one but not the other, or get shoppers of both to buy more.

Wal-Mart, Target or others could respond with their own bids for Whole Foods, or for other food retailers such as Sprouts Farmers Market Inc., which is now "100 percent in play", according to Gordon Haskett analyst Chuck Grom. However, Whole Foods stock shot up 28 percent.

Yes, we'll continue to see prepared foods in demand. Having customers pick up their purchases in Whole Foods stores might help.

Analyst Madeline Hurley at research firm IBISWorld says books are more homogenous than groceries, and people want to know what they're getting in terms of foods.

The same is, however, expected to change once the acquisition is completed, according to Bloomberg. So there's lots of room to grow.

Its AmazonFresh delivery service, which has been slow to take off, accounting for 0.8% of all grocery purchases previous year.

The message is this: The brick-and-mortar retail business that pioneered organic, fresh food and the country's dominant e-commerce company makea powerful combination.

Amazon could cut costs if the technology gets good enough to deploy at Whole Foods locations. But it has been struggling to find a profitable model. It's also been testing automation technology at a Seattle convenience store that's now open only to Amazon employees. But she would never buy food online, she said. The stores could teach cooking skills, hold classes and educate about food.

Shoppers have plenty of options.

But mostly, online business gives shoppers choices, he said.

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

"I don't like the thought of my fresh groceries sitting on my doorstep while I'm at work", Anderson said. Indeed, shares in competitors sank in early NY trading. If you would like to discuss another topic, look for a relevant article.



Otras noticias

Tendencias Ahora

USA special envoy met with remaining 3 Americans in North Korea
Some go to witness specific North Korean state holidays, others for events like the Pyongyang Marathon. He was arrested for trying to steal an item bearing a propaganda slogan, North Korean media reported .

US Open : Four-way tie at championship as big guns crash out
Three players - Brian Harman , Tommy Fleetwood and Brooks Koepka - were in the clubhouse on five under, two back from Fowler . The rounds of the day were turned in by Hideki Matsuyama and Chez Reavie , who equaled Fowler's 65 on Thursday.

Amir fit again, will play final against India
And how can Pakistan influence their qualification into a final? "How?", Ganguly told India Today in an exclusive chat. Chasing a paltry score of 212, Pakistan crossed the line for the loss of two wickets and 12.5 overs to spare.

Pens' Bonino broke tibia, kept playing in Game 2
It's a stretch that began after he gave up a second-period goal to Viktor Arvidsson in a 4-1 loss in Game 4. This team was different, different from previous year even, and not necessarily in a talent-laden way.

Rosenstein Says He Has Seen No Reason to Remove Mueller
Spicer did not outright discount the notion of removing the special counsel , but he noted Ruddy was not a spokesman for Trump . If President Donald Trump decides to terminate special counsel Robert Mueller , then it's going to get very ugly very quickly.

Theresa May offers support package for London fire victims
Mr David Lammy, a London MP, joined the chorus of condemnation and said the fire amounted to "corporate manslaughter". MPs heard 17 people are confirmed to have died and 34 casualties treated in London hospitals as a result of the fire.

Sarfraz Ahmed's Etawah-based mamu roots for India in Champions Trophy final
Hasan, who is a senior clerk in Etawah Agriculture Engineering College, lives in Etawah with his family. But Rohit Sharma, in the company of Indian captain Virat Kohli , ensured Bangladesh never had a chance.

London fire: Multitude of fatalities, 50 admitted to hospitals
Grenfell Tower had an official "stay put" policy telling residents to blockade themselves inside flats and wait to be rescued. The cladding is so unsafe , it's approved in Australia only for interior use or in low-rise buildings, The Guardian reported.

Johnson, McIlroy and Day miss US Open cut
Stricker acknowledged it's a "challenge" to play near home . "Next week is for totally different purposes". Still to be determined was who made it to the weekend, and where the cut would fall.

Grim search at London blaze site continues as anger mounts
Her grandson Prince William accompanied her and told a volunteer, "That's one of the most bad things I have ever seen". The PM had earlier visited Chelsea and Westminster Hospital to meet staff and patients who were caught up in the fire.