Amazon is buying Whole Foods for $13.7 billion

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pip777

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Amazon is buying Whole Foods for $13.7 billion

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Amazon (AMZN, Tech30) is making a big bet on physical stores and the business of food.

The online retail giant announced Friday that is buying organic grocery chain Whole Foods (WFM) for $13.7 billion in cash.

Amazon said it will continue to operate Whole Foods stores under that name as a separate unit of the company.

The deal shows Amazon's interest in moving into the business of operating traditional brick-and-mortar stores, even as traditional retailers crippled by Amazon's growth have announced a series of store closings.

It also shows Amazon's growing interest in groceries. And it demonstrates the financial might of Amazon, whose market value is greater than that of the 12 largest traditional general retailers combined.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy," said Jeff Bezos, Amazon founder and CEO.
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Interesting acquisition for Amazon. I can see them adding Whole Foods into the Amazon Prime fray in some capacity.
 
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Wow, they just beefed up their Prime groceries. Now only if they improve the quality of their delivery drivers.
 
Hasn't Whole Foods been on the decline in recent years? I wonder what Amazon's plan is to turn it around.
 
Chadleroy said:
Hasn't Whole Foods been on the decline in recent years? I wonder what Amazon's plan is to turn it around.
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Yeah, they have been. 

Pump resources to continue to compete with our brick and mortar stores while improving online grocery deliveries. 

I think this purchase is to eventually strengthen all their prime groceries and maybe eventually close up Whole Foods.

We'll see. But they definitely improved Prime with this purchase.
 
It really isn't odd, Amazon just got 400+ private warehouses for everything that they do. And will help cut the costs down through synergies. A likely result of this will be lower prices at Whole Foods also which is a huge help. There's already been a push for grocers to lower prices across the board, now whole foods will get to do it. Eventually figure out how to ship perishables via prime, etc etc.

Whole foods has sold off so much recently it's a cheap buy for Amazon. Rare to see the acquiring company up in the market too. Whole Foods just started trading two minutes ago, up 27% that's expected.


Very interesting subplot in this. Kroger shares were down 28% yesterday because earnings were crap. Down 12% because of the Amazon thing today. Lost almost half its value in 14 hours. Some really rich people just got their wealth destroyed.
 
Chadleroy said:
Hasn't Whole Foods been on the decline in recent years? I wonder what Amazon's plan is to turn it around.
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im sure this will add to their prime pantry or prime now services which are awesome btw

and make whole foods cheaper which will help tremendously because everyone i know says something (including myself) like this, "Whole foods is great but it's just too expensive"

oh and...

amazon >  
 
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I don't know what this means besides Amazon making more money. They will probably sell whole foods products online? Either way it's overpriced regardless
 
amazon fresh is now coming to your area is what i beleive amazon is going to do with these whole food stores.

great to because i have a whole foods right down the street from me

wish they would drop the WF name and call it Amazon Fresh
 
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JayzOnMyToes said:
amazon fresh is now coming to your area is what i beleive amazon is going to do with these whole food stores.

great to because i have a whole foods right down the street from me

wish they would drop the WF name and call it Amazon Fresh
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Yeah they should do that
 
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