Published: Tue, June 20, 2017
Business | By Pat Ferguson

Amazon Buys Whole Foods For $13.7 Billion, Workers Will Now Be Robots?

Amazon Buys Whole Foods For $13.7 Billion, Workers Will Now Be Robots?

The company unveiled plans on Friday to buy upmarket U.S. grocer Whole Foods Market in a massive $13.7 billion (€12.24 billion) deal.

The stock prices of large food retail chains, such as Costco, tumbled a bit.

Amazon will now control 465 Whole Foods stores across North America and the United Kingdom.

"We are always concerned when there is some loss of brick-and-mortar stores out there", Mullins said after just hearing of the news early Friday.

According to the release, Whole Foods will continue to operate under its own name and Mackey will stay on as CEO of the brand.

Nonetheless, a lot is about to change.

"Amazon is an innovative company and we are excited about our partnership".

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But shares of Whole Foods shot up 29.1 percent to close at $42.68, while Amazon jumped 2.4 percent to $987.71, a gain of $11.3 billion in market capitalization, close to the value of the deal itself. "What we'll be watching next is whether Amazon makes a second big bet in brick-and-mortar by buying another established player, one that sells clothing and other items for example", says Bankrate's Hamrick says. I think ultimately, this is good for consumers. The company had sales of about $16 billion a year ago. So when you give consumers the flexibility and power to procure the goods they want, and have them delivered straight to their front door, that's a winning proposition. But there have been challenges. Certainly, it would appear to Cantillon that Bezos sees the future as slightly more nuanced than the vista of couch-bound online shoppers ordering everything from fast food to films online. Has that been a problem for Amazon? Amazon could integrate it with technological advancements to improve the shopping experience, and, in turn, help Whole Foods rein in revenue. Shoppers skip the checkout line, and their Amazon accounts get automatically charged.

Amazon.com, Inc. (NASDAQ:AMZN) has struck a deal to acquire Whole Foods Market, Inc.

The market reverberations of the announced deal traveled beyond the retail industry - shares of food companies like Hershey and Campbell Soup slid, too.

Especially among millennials, is that right?

Stanford University Marketing professor Wesley Hartmann said quality may not slip if the takeover comes to fruition because Amazon is incredibly efficient, while industry analysts have said Whole Foods is not.

Yes. That's an extraordinary penetration for a supermarket chain with just 431 stores.

The grocery store business has been rapidly changing, but today that change just might have gone into overdrive. "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". The stores could teach cooking skills, hold classes and educate about food.

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