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prensaestatal.com Agosto 16, 2017


Whole Foods Markets to be Acquired by Amazon

18 Junio 2017, 04:48 | Dolorita Barahona

Amazon has announced it is acquiring upscale grocery chain Whole Foods in a deal valued at $13.7 billion.

For Amazon, the deal marks an ambitious push into the mammoth grocery business, an industry that in the United States accounts for around $700 to $800 billion in annual sales.

Amazon, which is sitting on $21.5 billion in cash, has long eschewed big acquisitions.

Consumers could also see more Whole Foods stores thanks to Amazon's financial might.

Amazon's deal also gives it a brick-and-mortar footprint around the U.S. Phrases like "synergy" were mercifully not used.

"We want to assure you that Amazon shares Whole Foods Market's deep commitment to quality and customer service".

Senior retail analyst Walter Loeb wrote in a Forbes piece that while Whole Foods will continue to be operated by chief executive John Mackey out of Austin, he expects Amazon to "automate the whole operation, integrate it into its websites and lower prices".

Amazon said that it won't change the Whole Foods Market brand and stores will continue to operate under the same brand name. It's expected to be official in the second half of 2017. It already dominates ecommerce.

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.

SELYUKH: Outside the Whole Foods in Northeast Washington, the shoppers were broadly pleased with the news - two trusted brands coming together, presumably planning to offer something high-quality and convenient - but then a big-picture step back from Sam Bernstein. The Seattle-based company already offers discounted Amazon Prime memberships for people receiving government assistance and is part of a pilot program to deliver groceries to food-stamp recipients.

Analysts praised the transaction as a savvy move by Amazon to enter the physical grocery space and a possible method to drive down prices at Whole Foods, dubbed with the unflattering "Whole Paycheck" nickname for its expensive food offerings.

Wal-Mart has been trying to address some of those online threats, pushing harder into the online market to build on its strength in its stores and groceries. Other retail and food distribution-related stocks in the USA and Europe, including Wal-Mart and Target, followed suit.

The president has yet to fill three vacant seats on the Federal Trade Commission, leaving the possibility open for an anti-tech appointee to drive a wedge in Amazon's acquisition.

Kyle Bunch is with R/GA, a marketing, advertising and consulting firm right across from the Whole Foods headquarters.

Whole Foods had been under pressure from activist hedge fund Jana Partners LLC prior to the announcement of Friday's deal, prompting it to overhaul its board of directors.

Whether shareholders and shoppers will benefit is another matter.

"We're becoming a giant corporation in the USA", she said.

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



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