Amazon buys Whole Foods

  • News
  • June 20, 2017
  • The Register team
Amazon buys Whole Foods

Two of the most well-known names in American retail have come together as Amazon buys out Whole Foods supermarket for $USD13.7 billion.

The deal sends shock waves across both the online and brick-and-mortar industries.

Grocery chains plunged on Friday -- Wal-Mart Stores fell as much as 7.1 percent, while Kroger Co. tumbled 17 percent -- as investors worried that woes will mount in the increasingly cutthroat industry.

Whole Foods is known to specialise in organic, natural products and employes just under 100,000 staff.

Analysts think the impact of this purchase will be to drive down prices and dent profit margins for rivals, as well as transforming Whole Foods’ in-store experience as Amazon really gets to work on it.

It’s expected that Amazon will integrate Whole Foods’ inventory and online ordering into grocery services like AmazonFresh and Prime Pantry.

In the meantime, Amazon Prime customers may start to see Whole Foods products in the AmazonFresh lineup, including the grocers’ prepackaged meals, which make up about 20 percent of Whole Foods’ sales now.

Sourced: Bloomberg

Although an unlikely match for the two mega chains, Amazon has been slowly making its way into the brick and mortar scene, even opening physical book store.

Retailers based in Australia worried when the online giant expressed its plans to open in the country, marking the first move over to any pacific region.

The acquisition of Whole Foods for USD$13.7 billion its Amazons largest deal, with the buyout of Twitch, an online streaming video game site, for just USD$970 million coming in second.

CEO Jeff Bezos had a jump in wealth by USD$10 billion over the past two months.

The collaboration of these two retail giants means more exciting opportunities for the two companies.

Analysis expect AmazonFresh, the food delivery side of the site, to be able to benefit the growth of Whole Foods delivery arm.

AmazonGo patented concepts of cashier-less checkouts, and following that ‘check-out free checkouts’ as people walk out of the store as their iPhone tracks their items and paid for them.

Amazon is also eyeing new areas. On June 15 Bloomberg report had it eyeing a $US9 billion bid for Slack, the maker of a trendy chat app that companies use for in-house discussion.

If the deal does not go through, then Amazon will have to pay a $USD400 million breakup fee, but in Bezos case that is just under five percent of his total worth.

Since the announcement of the deal, Amazon shares jumped 3.3 percent, pushing its market capital to $USD470 billion.

Unfortunately the chain has no plans yet to move into the New Zealand market.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Fit-Out: A fresh new concept

  • News
  • October 23, 2017
  • Courtney Devereux
Fit-Out: A fresh new concept

Foodstuffs has launched a new small-format grocery brand linked to its existing New World offering called Fresh Collective by New World.

Read more
 
 
 
 

How did that happen? The rise of influencer marketing

  • News
  • October 20, 2017
  • Courtney Devereux
How did that happen? The rise of influencer marketing

Something has changed recently that has sent shockwaves through the marketing world. This is, put simply, that the current influencers brands are able to work with are infinitely more humanised, approachable and accessible than ever before.

Read more
 
topics
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Creating an experience for Halloween

  • News
  • October 19, 2017
  • Courtney Devereux
Creating an experience for Halloween

Halloween is slowly approaching, and while some retailers are doing their bit to stock the themed holiday goods, Look Sharp is adding a spooky experience to its offering to draw consumers in.

Read more
 
 

How to sell to a Kiwi Millennial

  • Opinion
  • October 19, 2017
  • Brad Mcintyre
How to sell to a Kiwi Millennial

Want to sell to youth (and "youth-adjacent") people in New Zealand today? Then you better think differently, says Eventbrite's Brad McIntyre.

Read more
 

Former Nosh owner Veritas Investments fined

  • News
  • October 19, 2017
  • Sarah Dunn
Former Nosh owner Veritas Investments fined

Just when we all thought the Nosh saga was nearly over, a further complication rears its head. The unprofitable chain of gourmet grocery stores has been embroiled in difficulty relating to its sale by Veritas to Gosh Holdings for most of 2017.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email marlene.coote@tangiblemedia.co.nz or call 09 358 7297 / 027 544 2298

View Media Kit

}