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Amazon buying Whole Foods in $13.7 billion deal; grocery stocks tumble

18 Juin 2017

"It is hard to say what Amazon's online strategy will be for Whole Foods", she said.

The parties expect to close the deal during the second half of 2017.

The growth of online grocery shopping has faced barriers. "With one $13.7 billion check from Amazon, that distinction is gone". He's got professional respect for Amazon for how efficiently and successfully it runs its business. If Amazon chooses to continue relying on Instacart for delivery at some stores, the startup could prove itself to be a valuable partner, said Guru Hariharan, a former Amazon manager and founder of Boomerang Commerce Inc., a company that designs software for large retailers. "But I don't really buy any home items on Amazon, not anything I put in my body".

"Maybe feels hyperbolic but I think it could be one of the biggest acquisitions in the last 20 years in terms of the ability to kind of bring together technological innovation and this sort of physical footprint that Whole Foods has", Bunch said.

Since Whole Foods is a publicly traded company it could be scuttled if another bidder decides to offer a lot more money for the grocery chain.

"Consumers want to know what they're getting and putting in their bodies", said Madeline Hurley, a senior analyst at market research firm IBISWorld.

But in February, Whole Foods said it no longer saw the potential for expanding its flagship chain to 1,200 locations, up from about 460 in the United States, Canada and the United Kingdom.

But the market punished other retailers, including Wal-Mart Stores, which lost 4.7 per cent, amid expectations the deal would sharpen price competition in the industry, denting profits.

June 16 A decision by Goldman Sachs Group Inc past year to move an investment banking veteran to Seattle, as well as Evercore Partners Inc's hiring of a top banker defending companies against activist investors, has paid off handsomely.

In preparation for the grocery price war, Wal-Mart in recent months has cut grocery prices, improved fresh food and meat offerings, modernized shelving and lighting in its grocery aisles, and expanded its online grocery pickup service. Amazon invested in refrigerated distribution centers to hold items.

More hubs means quicker and fresher delivery, which will bolster Amazon's existing grocery delivery service, AmazonFresh. Amazon's stock shot up on the news.

The new relationship could force traditional grocery chains to evolve. "I'm aging, and I was in there and I was surprised how many people were bent over with age". This will help Whole Foods understand its customer better and have the right products at the right price at the right time. "If there ever was a time crunch, I'd consider it", he said.

The arrangement became much more complicated Friday, when Amazon said it was buying Whole Foods for $13.7 billion.

There can be choppiness in the acquirer's stock price for a year or more after a deal is completed as the integration between companies takes place. It wasn't until 2015 that the number of pure grocery stores actually started to decline, according to government numbers, and then only slightly.

Still, Amazon is playing catch-up in the grocery business.

Many like the fast and convenient service Amazon provides but others are asking at what cost. "Whole Foods is expensive enough".

We ran into her making a grocery run - a trip she makes quite often.

Amazon buying Whole Foods in $13.7 billion deal; grocery stocks tumble