Junio 22, 2017

Can Amazon persuade enough people to buy fresh food online?

19 Junio 2017, 01:57 | Crisanna Felipe

The scene on Thursday during the first round of the U.S. Open at Erin Hills. Getty Images

The scene on Thursday during the first round of the U.S. Open at Erin Hills

The surprise deal shakes up the $800 billion grocery sector - and the broader retail industry itself - by marrying Amazon's vast scale and digital prowess with Whole Foods Market Inc.'s 460 stores and fresh-food distribution network.

The merger announcement suggested that Whole Foods would maintain its current operations as before, saying the chain "will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world".

In April, Whole Foods hired former Office Depotexecutive Heather Stern to serve as its new general counsel and global vice president of legal affairs.

This deal largely ensures brick-and-mortar stores will not disappear anytime soon. Grocery chains plunged on Friday - Wal-Mart Stores Inc. fell as much as 7.1 percent, while Kroger Co. tumbled 17 percent - as investors anxious that woes will mount in the increasingly cutthroat industry. And this might have entered into Amazon's bid for Whole Foods.

Metcash is in fact due to report its annual results for the year to April 30 a week today and the Amazon news will see investors wonder about its future next year as Amazon arrives with a major grocery offer to be made available. It jumped 27 percent to $41.98 as of 11 NY, bringing it close to the transaction price.

I've always wondered how Grocery Drones would work, and now with Amazon's purchase of Whole Foods, we're one step closer to finding out. "It's a warning shot for the food retail industry that competition likely heightens on top of an already challenging backdrop". Gartner retail analyst Robert Hetu said Amazon could bring pieces of that to Whole Foods to further cut costs.

The massive $13.7 billion Amazon-Whole Foods merger may also invite government oversight regarding antitrust concerns, a dynamic complicated by potential conflicts of interest from officials tied to the merger. While its string of e-commerce acquisitions headlined by certainly helped, management says the majority of growth came from Near its headquarters it's also testing its Amazon Go store, that sells prepackaged meals and functions without cashiers, sensing which items customers pluck from the shelves and then charging their online accounts. They have included well known names across many sectors: Gymboree, Sports Authority and Payless Shoes have all filed for bankruptcy within the past year. "So theoretically you could get 5-minute delivery".

"Amazon could bring technology to all Whole Foods locations, or it could absorb Whole Foods into AmazonFresh".

Amazon, which reported $12.5 billion in cash and equivalents and a free cash flow of $10.2 billion in the year ended March 31, has plenty to spend.

Jana, which disclosed an 8.3 percent stake in Whole Foods in April and is the company's second biggest shareholder, stands to make roughly $300 million from the sale to Amazon.

Texas-based Whole Foods, which has nine United Kingdom stores mainly in London, will continue to operate under its own brand.

The multibillionaire, whose company announced it would buy Whole Foods on Friday, wrote: This tweet is a request for ideas. Store closing announcements are piling up at a record pace.

Groceries are already a fiercely competitive business, with low-priced rivals like Aldi putting pressure on traditional supermarket chains and another discounter, Lidl, opening its first US stores just this week.

In an interview with Texas Monthly that ran earlier this week, Mackey chafed at Jana's campaign.

Whole Foods, while notably expensive, faced a paradoxical problem of its own popularity, which was easily imitated.

According to Madeline Hurley, IBISWorld senior analyst, this acquisition means Amazon will be able to reach more consumers than ever before. "That's my baby. I'm going to protect my kid, and they've got to knock Daddy out if they want to take it over".

Otras noticias

Tendencias Ahora

Castile protesters target city where officer worked
Before Castile completed the sentence, Yanez interrupted and replied, "Okay" and placed his right hand on the holster of his gun. Castile , a black motorist, was killed during a traffic stop last July by officer Jeronimo Yanez in Falcon Heights, a St.

Champions Trophy: Waqar Younis lashes out at Eoin Morgan for pitch complaint
It was a wonderful performance". "Credit goes to the bowlers and the batters who finished it very well", Sarfraz said. Pakistan has pulled up a surprising yet a convincing win against the powerful England team upsetting the home crowd.

Lawyer says Trump not under investigation
The Secret Service has said it has no records of any recording systems or transcripts of any conversations Mr. Trump has in recent days expressed frustration with Rosenstein, who has the authority to fire Mueller .

Fleetwood: 'Pictured winning the US Open a lot'
Rory McIlroy of Northern Ireland reacts after finishing on the ninth green during the second round of the 2017 US Open . Opens, Johnson added life to what is traditionally golf's toughest and often most drama-free major.

Game plan ready to overcome India in Champions Trophy final: Arthur
It did not help that they delivered 13 wides (out of 25 extras) and three no-balls, with Ashwin and Bumrah particularly guilty. Kohli looked to execute his trademark flick off the next ball only to get an edge; it flew to Shadab Khan at point.

Tottenham striker Harry Kane would love England captaincy
England , however, refused to lie down as they registered what could be an important point in their quest to qualify for Russian Federation .

Baseball Gunman Had List of GOP Congressmen in Pocket During Attack
Jack Sava, director of trauma at MedStar Washington Hospital Center said at a news conference Friday afternoon. I hated to see what he'd done up there. "I think that an excellent recovery is a good possibility", Dr.

Brooks Koepka US Open champion at Erin Hills
Brooks Koepka shot a 5-under 67 to finish at 16-under 272 and match Rory McIlroy's tournament record for most shots under par. A solid approach on the par-4 11th allowed him to roll in for birdie and he repeated that on the 12th to go 4-under.

Koepka claims first major title by taming Erin Hills
He closed with a 5-under 67, only realizing after his par on the final hole that a birdie would have set yet another U.S. Koepka said the world number one had called him on Saturday, offering some advice which came in handy.

Koepka in four-way tie for lead as Matsuyama stars at Erin Hills
Rickie Fowler , the first-round leader, is in a three-way tie at 6 under, followed by an eclectic mix of five golfers at 5 under. Si Woo Kim, who captured The Players Championship a month ago, had a 70 and was at 5-under 139 along with a pair of U.S.