Amazon is always looking to expand its business and now they’ve purchased Whole Foods which could ramp up online grocery sales. The deal is worth $13.7 billion USD and is expected to close the 2nd half of this year. John Mackey will remain the CEO of the chain and the stores and brand will remain operating as usual.
“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. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said John Mackey, Whole Foods Market co-founder and CEO.
Apparently, investors in the “healthy” grocery chain have not been happy with its performance and encouraged them to sell or merge with another chain. There aren’t many big grocery chains with the same theme as Whole Foods so it looks like selling to Amazon was a more appetizing proposition.
For its part, Amazon is looking to expand its online grocery business and having a bunch of grocery stores as mini-warehouses may be ideal. Customers order online and the items are picked from the store closest to the address and delivered. Of course, that is just my speculation on how it could potentially work but we can all agree that Amazon is pushing online grocery shopping. It will be interesting to see prices as Whole Foods hasn’t been a very cheap store to purchase from.
Last Updated on June 16, 2017.