AMAZON $13.7 bln takeover of Whole Foods

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El padrone

Hedonist, Depressive realist, Existential nihilist
Amazon’ s $ 13. 7 billion purchase of Whole Foods Market will be finalized Monday , and shoppers will see an immediate markdown in prices on a number of items , including salmon , avocados , baby kale and almond butter , as the tech giant looks to shake up the grocery business.
Amazon and Whole Foods announced the news on Thursday .
“ The two companies will together pursue the vision of making Whole Foods Market ’ s high -quality, natural and organic food affordable for everyone ,” they said in a joint statement. “ Whole Foods Market will offer lower prices starting Monday on a selection of best- selling grocery staples across its stores , with more to come. ”
Amazon said it will continue to lower prices at Whole Food stores and will eventually offer special discounts and in - store benefits to Amazon Prime members. ( Jeffrey P. Bezos , the founder and chief executive of Amazon, owns The Washington Post.)
Other foods that will be cheaper beginning next week : Bananas, eggs , ground beef, rotisserie chicken , butter and apples .
[ Amazon to buy Whole Foods Market in deal valued at $ 13 .7 billion]
News of the impending deal has rattled the grocery industry , which is already struggling to keep up with growing competition . On Thursday , stock prices of rival grocers took a hit after Amazon announced plans to lower prices at Whole Foods . Shares of Kroger , which was rumored late last year to be considering its own takeover of Whole Foods , fell more than 8 percent . SuperValu , with a network of 2 ,000 stores across the country , was down more than 6 percent , while Costco dipped about 5 percent . ( Shares of Whole Foods , meanwhile, rose about 1 percent . )
Analysts said slashing prices was an obvious move . Whole Foods — where prices are an estimated 15 percent higher than average — has been nicknamed “whole paycheck ” because of the premiums it charges .
“ Lowering prices is certainly the main concern , and Amazon is playing to its strengths here ,” said Michelle Grant , head of retailing at market research firm Euromonitor International. “ Obviously the low- cost approach is in Amazon’ s DNA, and it’ s something Whole Foods has been struggling with for a quite some time .”
“ Everybody should be able to eat Whole Foods Market quality – we will lower prices without compromising Whole Foods Market ’s long - held commitment to the highest standards,” Jeff Wilke, chief executive of Amazon Worldwide Consumer , said in a statement. “ There is significant work and opportunity ahead , and we’re thrilled to get started.”
Amazon shoppers will also begin to see changes on Monday , with the addition of Whole Foods ’ private label products — including 365 Everyday Value , Whole Paws and Whole Catch — to Amazon. com, AmazonFresh and Prime Pantry .
Select Whole Foods stores will also begin adding Amazon Lockers, where customers can pick up online orders or drop off returns.
Amazon announced plans to buy Whole Foods in June. The deal received regulatory approval on Wednesday.

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