Junio 24, 2017

Weekly Wrap: Amazon buys Whole Foods. Now what?

18 Junio 2017, 06:14 | Dolorita Barahona

(Amazon founder and CEO Jeffrey P. Bezos owns The Washington Post).

The convergence of retail and ecommerce accelerated with a blockbuster Friday when it was announced that Amazon would buy Whole Foods for $13.7 billion and Wal-Mart is snapping up ecommerce men's clothing company Bonobos for $310 million. Supermarket chains also took big hits, with Kroger, whose shares tanked Thursday on a profit warning, tumbling 9.2 percent and Supervalu falling 14.2 percent.

Any number of Whole Foods locations - more than 460 in the U.S., Canada and Britain - could be used as jumping off points for wider delivery and pickup of groceries and prepared foods ordered online.

A person familiar with Amazon's strategy said the company believed customers wanted a combination of online and real-world buying options. The addition of hundreds of physical retail locations could also represent a game-changer for the company's ability to deliver products to customers in ever-shorter time frames. He expects the retailer to keep the Whole Foods stores open and eventually even make grocery deliveries via drone. The giant retailer sells the most groceries than any other retailer. SuperValu, with a network of 2,000 stores across the United States, took one of the biggest hits, with a 14% drop on Friday.

The company unveiled the first of its slimmed-down and lower-priced 365 by Whole Foods Markets about a year ago in Silver Lake.

They're coming down, analysts say.

As a fellow Team Member, I believe the possibilities to extend Whole Foods Market's mission are virtually limitless, and I have never been more energized about what the future holds for all of us. The stock is up more than 31% so far this year.

Generating value from a brick-and-mortar footprint for ecommerce sales is something Wal-Mart has been pushing aggressively since it bought previous year.

Some investors may be wondering if Amazon will disrupt grocery stores the way it upended the bookstore business.

Marlan Clarke, who stopped in at the Whole Foods Market on Arroyo Parkway in Pasadena on Tuesday, is uneasy about the planned acquisition.

"Food is the one thing Amazon hasn't been able to figure out", said Josh Olson, a technology analyst at Edward Jones.

"They are going to have to put in new technologies", he said.

SELYUKH: Bernstein is actually a huge fan of both Whole Foods and Amazon. The stores will evolve to become more experiential.

"Now they can literally use the Whole Foods stores themselves as distribution centers", he said. The company is known for its organic produce and other health products.

Almost $1.5T: Amount spent by Americans on food in a year.

We recognize this is very big news and may cause some uncertainty.

On Friday, June 16, 2017, online retailer#Amazon announced its plans to purchase #Whole Foods. "They're greedy bastards, and they're putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods, because it's in their self-interest to do so". "They're not really competitors".

But it also creates concerns about competition in the market.

Otras noticias

Tendencias Ahora

British PM Theresa May To Meet Fire Survivors In Downing Street Residence
Meanwhile, donations to help those affected by the Grenfell Tower tragedyhave surpassed 2 million pounds in just two days. She said after the meeting that there have been "huge frustrations" in the community as people tried to get information.

Darjeeling unrest: Police officer stabbed to death; Mamata tears into GJIM
She repeatedly urged the people of the hills not to pay heed to Gurung and withdraw the indefinite bandh . But GJM assistant secretary Binay Tamang alleged that two supporters were gunned down by the police.

US Open 2017: Rory McIlroy highlights from Round 2
Spieth didn't mention this intangible, but none of the first 18 players on the leaderboard has won a major championship. And instead of leaving Erin Hills fretting about how much better he could've done, he was thankful it wasn't any worse.

NBA champion Warriors to parade through the streets of Oakland
The following morning, there were unconfirmed reports that said the team had voted unanimously to blow off the White House visit. However, several Warriors, including Stephen Curry , have been outspoken about their views on Trump in the past.

Grief turns to anger in wake of Grenfell Tower fire
Police in London have said 58 people are now presumed dead following this week's devastating fire at Grenfell tower block. Choucair told Reuters residents had concerns about the safety of the building and she was angry about what has happened.

Putin present to see Russia kick off Confederations Cup
The eight-team tournament will put Russia's ability to handle thousands of visiting and home fans under the spotlight. Days earlier, Putin had called for better results from the world's 63rd-ranked team to impress the Russian public.

Koepka and Fowler pull clear at Erin Hills
Paul Casey , of England, reacts after his birdie on the 11th hole during the second round of the U.S. Koepka also reached the green in two on the 667-yard closing hole for a two-putt birdie and a 68.

Trump publicly acknowledges Russia probe includes him
Even so, some are calling for Mueller to step aside, and others are encouraging the president to fire Mueller. But at that point, experts say, appointing a new special counsel would seem nearly meaningless.

Brits, Kiwis advance to next round in America's Cup prelims
The challenger will still need to win seven in order to pry the oldest trophy in worldwide sports away from powerhouse Oracle . That will be followed by Sweden and Japan at 5.37am, before Team New Zealand and Ainslie's team go at it again at 6.06am.

Warriors to Do 'Whatever it Takes' to Re-Sign Stephen Curry
They came close, dropping a game to Milwaukee in the Eastern Conference finals but then sweeping the Lakers in the Finals. Golden State Warriors forward Draymond Green appears to be taking some shots at the Cleveland Cavaliers .