Grocery store stocks plummet after Amazon-Whole Foods deal

Posted June 20, 2017

Several retailers have also been experimenting with ways to get people to buy groceries online, a habit that still hasn't fully taken off. Walmart, for instance, is trying to take advantage of its brick-and-mortar footprint through a service where people can buy groceries online and pick them up in the store.

Wal-Mart Stores Inc said on Friday it would buy online men's fashion retailer Bonobos Inc for $310 million, in its fourth e-commerce deal in under a year, as it seeks to bridge the gap with e-commerce leader Amazon.com Inc.

"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 CEO Jeff Bezos. "Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades". "But grocers have to respond and move faster now".

Texas-based Whole Foods Market is engaged in the business of natural and organic foods supermarket.

Analysts praised the transaction as a savvy move by Amazon to enter the physical grocery space and a possible method to drive down prices at Whole Foods, dubbed with the unflattering "Whole Paycheck" nickname for its expensive food offerings.

"For the most part, it's too expensive for me to do all may shopping there", said Mary Funari, a Whole Foods shopper.

Amazon says in a statement that it has "no plans to use the technology developed for Amazon Go to automate the jobs of cashiers at Whole Foods".

As inflation swells, some at UK central bank want rate hike
It will also likely increase the cost of business borrowing but rates for that are nowhere near the base rate in any case. It had been expected that seven would vote for unchanged rates and just one for an increase.

Whole Foods sent a letter to customers after the merger announcement, calling the agreement a new chapter in Whole Foods' history and an incredible opportunity.

"Limited-assortment" grocers, such as Kettering's Trader Joe's - stores that typically sell private-label goods and less variety in general - are growing quickly now.

West Hartford resident Nancy Kennedy, 88, who stopped by the Whole Foods store to shop, said she does not go online because she's not familiar with digital technology.

Whole Foods, known for its organic and specialty food will continue to operate stores under its brand and will continue to be led by cofounder and chief executive John Mackey, the two companies said. As a matter of fact, all parties are expected to close the transaction during the second half of 2017.

Amazon already offers grocery-delivery services in some cities but customers seem excited at the prospect that the Whole Foods deal will make food at your doorstep even easier.

Almost $1.5T: Amount spent by Americans on food in a year. "That is the reality today at Amazon, and it will no doubt become the reality at Whole Foods". The investment firm Jana Partners said in April that it had built up an ownership stake in Whole Foods because it saw ways to address its "chronic underperformance for shareholders".