How Amazon buying Whole Foods could change the way we buy groceries
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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 Amazonwould buyWhole 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.
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 Jet.com 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.
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