Culture

Amazon's purchase of Whole Foods 'bought a distribution network,' expert says

Amazon's purchase of Whole Foods 'bought a distribution network,' expert says”

That fits with Whole Foods private-label push to compete on price, and gives Amazon a bigger foundation on which to develop its own food brands.

The supermarket chain will continue to operate stores under the Whole Foods Market brand and John Mackey will remain the company's CEO, the release said.

Inc. will pay $42 per share for Whole Foods Market Inc., including debt.

The Amazon-Whole Foods combination could put even more pressure on those chains and other big grocery sellers.

Food and retail stocks floundered on Friday (June 16) on news of Amazon's takeover of Whole Foods Market, but the Dow edged to a fresh record on gains in energy shares. He also said that the deal will benefit the customers as it will give them the highest quality of experience, convenience, and innovation to customers. Amazon, on the other hand, started as an online bookstore and then proceeded to evolve quickly, breaking into new markets ranging from music streaming to grocery delivery.

Investors are likely anxious that Amazon, once entrenched in the physical grocery store business, will ruthlessly cut prices for food products like it did with books.

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In terms of other experience in the food industry, the online retail company has a subsidiary called AmazonFresh-a grocery delivery service available in some USA states and London, U.K. A prototype grocery store called "Amazon Go" opened a year ago in Seattle, Washington.

But Instacart is also a competitor to Amazon's growing grocery delivery service, AmazonFresh.

It's not yet clear how its drone delivery program or Prime one-day delivery could change Whole Foods.

The Whole Food purchase price topped $13.7 billion dollars in cash.

Amazon has been exploring different business ventures as of late. Some of you might already buy some traditional grocery store items on Amazon, and they've previously experimented with an entirely self-serve physical grocery store. Twenty publicly traded retail chains lost a combined $37.7 billion in market value Friday amid concerns about Amazon's competitive impact on their business, according to an analysis from CNBC Data.

There are a couple of strategic plays at work for the online retail giant. The arrangement is pending shareholder endorsement, however, it is relied upon to close amid 2017's later half. "I think that this might be an opportunity for consumers who have felt that Whole Foods is inaccessible".



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