Amazon to Acquire Whole Foods Market for $13.7 Billion in Historic Deal

In a shocking move, Amazon Inc. has agreed to purchase the Whole Foods brand and all retail locations for an astonishing $13.7 billion dollars. This move marks the largest acquisition by far for the company headed by Jeff Beznos.

This move marks a historic transition for the online giant, spreading into the hyper-competitive retail grocery business. Amazon will now face competition from competitors to the likes of Walmart, Kroger, Sprouts, Trader Joes, and more.

The announcement of the acquisition has lead competitor’s stocks dropping by as much as 16% and increasing Amazon’s stock price slightly. Many fear that Amazon will be able to cut marginal profits so thin that it will make it close to impossible for it’s competitors to compete with the lower prices Amazon may bring to a chain that is known for it’s traditionally high prices for organic food.

 

Many are hoping that this move will allow Amazon to use Whole Foods locations as “hubs” that allow cheaper and faster delivery for the “Amazon Fresh” brand to deliver fresh groceries directly to customer’s doorsteps. This move could disrupt the grocery industry and change the way consumers purchase their food and groceries.

Amazon and Whole Foods released a statement saying that the company does not plan to have any layoffs or change the business in any dramatic way at this time.

It still remains to be seen how this will impact the market or it’s customers.

We’ve seen from Amazon acquisitions in the past such as Twitch.tv how Amazon is able to infuse their brand into these services to “Sweeten the deal” for existing users as well as Amazon’s large customer base.

What do you think about Amazon’s purchase of Whole Foods?

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