Published: Sat, June 17, 2017
Economy | By Guillermo Lane

Amazon Buying Whole Foods in Bold Move into Brick and Mortar

Major U.S. indexes are slightly lower in early trading on Wall Street, but grocery stores and other retailers are plunging after Amazon said it would buy Whole Foods Market.

"People who used to say Amazon couldn't be profitable because they were just a bookstore might want to think before they suggest Amazon can't make money with Whole Foods because it's just a grocery store", Low said.

Amazon will also likely offer cheap grocery delivery options, she said, which would put pressure on grocers to follow suit.

"However they're going to use Whole Foods in their portfolio, you're going to see it here in Dallas", Cox said.

[RELATED: Join us at Microsoft, and learn tactics and strategies to conquer all your biggest communications challenges.]Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades-they're doing an incredible job and we want that to continue.

The New York Times said the Amazon purchase of Whole Foods gives the online giant a tremendous boost in its proximity to customers within 90 minutes or less. Amazon is paying $42 per share for Whole Foods, which is a 27% premium from Thursday's night close. Amazon, which for years has been testing new technology and innovations in quiet corners, would now have a network of physical locations to test and implement those ideas.

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In May, under pressure from Jana Partners, Whole Foods replaced five board members and its chief financial officer.

For Amazon, the deal marks an ambitious push into the $670 billion grocery business. The stock prices for a number of grocery companies - including Ahold Delhaize, which owns Stop & Shop, Peapod and Hannaford - have gone tumbling.

Most of IN doesn't have a Whole Foods store nearby. Whole Foods over the past decade led the move into high-quality, organic food, but its growth in slowed as traditional grocers responded with similar offerings.

In a bombshell announcement, Amazon has announced its intention to buy Whole Foods for $13.7 billion.

Amazon has been trying to dip its toes into grocery sales for years. "That is the reality today at Amazon, and it will no doubt become the reality at Whole Foods".

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