Amazon buying Whole Foods in $13.7 billion push into selling groceries

Amazon buys the Whole Food Market company. The location at 3751 E Foothill Blvd Pasadena Calif.

Internet retail giant Amazon will buy leading natural and organic supermarket chain Whole Foods in a deal valued at $13.7 billion, the companies announces Friday.

News of the deal sent shares of traditional retailers like Walmart, Target, Costco and Kroger tumbling as much as 13 percent as investors tried to digest the implications of an Amazon-backed grocery chain. Until now, Amazon has largely focused its grocery efforts around its Amazon Fresh subscription service, which promises quick food delivery for online orders.

"They're doing an incredible job and we want that to continue", Amazon founder and CEO Jeff Bezos said.

The merger of Whole Foods and Amazon is expected to close later in 2017 after gaining approval from USA regulators and Whole Foods' stockholders.

The acquisition, which has not yet received approval from the shareholders of Whole Foods Market, adds a 27% premium to Thursday's closing value of its stock. This move is likely to bring more bad news for retailers who have endured many a sleepless night cursing Amazon and its influence on their business.

"The first thing Amazon is going to do in this acquisition is to remove all those third party vendor services".

The Amazon Go pilot store allows customers to choose items and then pay the bill automatically by just walking out of the store, all without going to a cash register. And Walmart shares dropped more than 6 percent to $74.23 a share.

Whole Foods, known for its organic and specialty food will continue to operate stores under its brand and will continue to be led by cofounder and chief executive John Mackey, the two companies said.

"Whole Foods is so expensive - hopefully the prices come down a little", said David Pousho, 47, a middle-school teacher buying pork and ale at the San Jose Whole Foods on The Alameda, for a weekend Father's Day barbecue. The Journal said the acquisition "could make Amazon an overnight heavyweight in the all-important grocery business..."

In an email to customers titled "exciting news", Whole Foods vowed to keep quality high. "I think what they bought was a distribution network", Meyer said.

In a recent interview with Texas Monthly, Mackey called the investors "greedy bastards".

Set up in 1978, Whole Foods, whose stores now span more than 430 locations, has found it hard to attract more mainstream consumers as Walmart and other large chains have stepped up their sales of natural and organic products.

Shares of Amazon were trading up 2.44% in after-hours trading.

Dylan: But there's definitely a lot more going on here than the fact that Whole Foods has 30 locations in MA.

"The retail sector is used to change, but every so often an event occurs that shakes the industry to its core", said Neil Saunders, managing director of research firm GlobalData Retail. For example, when it comes to buying fresh food, we like to feel, see and touch the fruits and vegetables we're buying.

Related News:

  • NI 'most vulnerable to bad Brexit deal' warns Coveney

    The two dominant parties in Northern Ireland, Sinn Fein and the DUP , both have terrorist origins and once killed each other. With May's electoral gamble backfiring, does she still have a mandate? We put forward our case for special status.

    Foreign investors bet billions on China blue-chips joining MSCI index

    Similarly, the major index providers should be keen to represent this economic reality through their indices. With retail investors' pessimism over the market, they are still worrying about further yuan depreciation.

    Russian Federation win Confederation Cup opener

    Russia's fast start contrasted with New Zealand seeming unsettled early in a game that began after an unusual pre-match ceremony. Portugal had a first-half goal against Mexico chalked off in the Confederations Cup after the action was reviewed on video.
  • Champions Trophy final: Mohammad Hafeez hails Pakistan spirit for India stunner

    Mohammad Hafeez hailed Pakistan's team spirit as the key to their stunning Champions Trophy final triumph against India. Banks, government and other organisations ran full-page advertisements congratulating the team for their historic win.
    Britain, European Union To Start Historic Brexit Talks

    Britain, European Union To Start Historic Brexit Talks

    Merkel spoke after meeting with Romanian President Klaus Iohannis, who also stressed the 27 European Union countries' unity. He thought that this first round of negotiations would be about getting a feel for each other.

    Afghan soldier kills 2 US soldiers

    March 19, 2017: An Afghan soldier opened fire on United States troops as they were training Afghan troops on a base in Kandahar. The group once controlled Afghanistan, and has recently regained its influence over Afghanistan.
  • Talks begin over British divorce from European Union

    David Davis and I, as chief European Union negotiator, will discuss the issues together, tackle difficulties, and lift obstacles.
    Will the Golden State Warriors finish off the sweep?

    Will the Golden State Warriors finish off the sweep?

    Warriors victory was powered by Kevin Durant's scoring exploits, who scored 31 points, seven of them in the closing minutes. What the league is witnessing with Golden State is potentially the greatest semblance of talent ever seen.

    Despite tweet, lawyer says President Trump not under investigation

    Sekulow , chief counsel for the American Center for Law and Justice , said the president was only referring to a news report. Perhaps they harbored some resentment against President Trump himself, and took pleasure in his discomfiture.
  • Senate Democrats weigh blockade to protest GOP health care plan

    A select group of Republican Senators has been working in secret to finalize the bill that would replace Obamacare. Popp did not say whether he thinks members of the two parties will actually meet in the Old Senate Chamber.

    So it begins: Britain kicks off Brexit negotiations with European Union

    The working language of the negotiations will be English and French, with interpretations provided by the European Commission . Britain a year ago voted to end its decades-old membership of the 28-nation bloc in a shock referendum result.
    Perez mum on rumors Ronaldo wants to leave Real Madrid

    Perez mum on rumors Ronaldo wants to leave Real Madrid

    Madrid's state prosecutor has alleged Ronaldo used an off-shore company to hide a portion of his income from the tax office. Reports surfaced that Ronaldo wants to leave the club due to allegations that he defrauded the country's tax authorities.


Most liked

Trump's legal plan quite simple so far: Fight, fight, fight
In that role, Mueller is not independent - he answers to Rosenstein (because Jeff Sessions , the attorney general, is recused). He was speaking on Fox News Sunday where specific questions about the alleged investigation were asked of him.

New Boeing jet and F-35 demand lift aerospace spirits in Paris
The two companies have also reached an agreement to collaborate on securing additional third-party fleet servicing agreements. Airbus , which moved first to update its aircrafts used in most midrange flights, now has a 60 percent market share.

NSW urge referees to avoid Queensland Origin wrestle-mania
But, after taking the first game in dominant fashion, the southerners smell blood in the water. Fifita said such smugness from the Sydney media only made his side's task more hard .

Britain still questions Brexit payment idea
British foreign minister Boris Johnson , like Davis a prominent backer of the leave campaign, also sounded an upbeat note. Davis said he was looking forward to starting work on crafting the new future relationship between Britain and the EU.

Celtics trade No. 1, expect to get man
If not, the Celtics have set themselves up even more nicely for a future that already includes the Nets' 2018 first-rounder. In 2016, the Sixers picked Ben Simmons , who didn't play at all during the season after breaking a bone in his foot.

Sekulow Hits Cable News Circuit Hard For Trump
Sekulow again repeated that he can not read minds. "I just gave you the legal theory of how the constitution works", Sekulow said.

Expansion draft: Panthers protect Bjugstad, leave Marchessault, Smith, Luongo up for grabs
Their selections will be revealed later to the public later Wednesday night at the 2017 NHL Awards at T-Mobile Arena in Las Vegas. The Panthers also protected four of their core forwards in Jonathan Huberdeau, Sasha Barkov, Nick Bjugstad and Vincent Trocheck.

Kerala Engineering Entrance: Boys outshine girls
The CEE has arranged the Facilitation Centres (FCs) for document verification during 11 to 14 June. Now, the CEE Kerala is going to finalise the KEAM Rank list 2017 for the qualified aspirants.

Mali forces kill five militants over hotel
A week back, the USA embassy in Mali had issued an alert about heightened dangers for foreigners at popular spots in Bamako . The minister said an attacker had been wounded and fled, leaving a submachine gun and six bottles of explosives behind.

Congressional Baseball Gunman Carried List Of Names At Time Of Shooting
President Trump, speaking from the White House, called for national unity after the "very, very brutal assault". Police in Hodgkinson's hometown in southern IL knew the gunman, only from a history of misdemeanor crimes.

Brexit talks to focus first on orderly exit
Davis insisted that talks about trade would occur "in parallel", but Barnier said they would start only in a second phase. But as Europe grows more confident in its future following the election victory in France of pro-E.U.

Minute's silence for victims of Grenfell Tower blaze
UK Chancellor Philip Hammond today indicated that flammable material suspected to have been used was most likely banned in the UK. Britain held a moment of silence for the victims on Monday, with emergency service workers bowing their heads in respect.

With Bills CB Shareece Wright
One of Wright's representatives, Tamerat Berhe , tweeted that Wright also gave a $300 tip for a total cost of $932.08. Shareece Wright knows the importance of a good first impression.

CBSE to declare NEET 2017 results today
All legal hurdles were cleared after the Supreme Court granted the CBSE permission to go ahead with NEET 2017 result declaration. The CBSE NEET Result 2017 declaration will pave the way for counselling and admission to 56,000 MBBS/BDS seats in the country.

Mumbai Blast Case: Abu Salem and 5 others found guilty
But he can not be hanged till death because of the extradition treaty signed with Portugal. According to the prosecution, the attack was to avenge the demolition of Babri Masjid.