Amazon buying Whole Foods for $13.7 billion

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NEW YORK-Online juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a strong move to expand its growing reach into groceries.

Amazon and Whole Foods Market, Inc. announced Friday morning that Amazon will buy Whole Foods for roughly $13.7 billion.

But she would never buy food online, she said.

Grocery stores, which have low profit margins, have also been competing more intensely when it comes to price, especially of organic and natural foods. Target and Walmart were each down 5 percent.

According to a report by Washington Post, news of the deal sent shares of rival grocers plummeting, thanks to the prospect of an Amazon-backed grocery chain.

Here's a look at some of the big moves happening in the stock market following news of Amazon's acquisition of Whole Foods Market.

The supermarket chain will continue to operate stores under the Whole Foods Market brand and John Mackey will remain the company's CEO, the release said.

Amazon spokesman Drew Herdener said plans do not include reducing jobs as the result of the deal and that the company does not plan to automate Whole Foods cashiers jobs with Amazon Go technology. Kroger, the nation's biggest supermarket chain, had earlier warned Wall Street of disappointing earnings. The Journal estimated that the Amazon announcement had wiped almost $29 billion from the aggregate market cap of rivals in the grocery category.

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About 450: Number of Whole Foods stores across the country.

But despite the Whole Foods acquisition and, by extension, the potential technology Amazon could implement in brick-and-mortar outlets, the company said it now has no plans to automate the jobs of cashiers in Whole Foods stores after the acquisition.

As Recode smartly pointed out, the deal won't just give Amazon control of a major grocery chain, it will also give the ecommerce giant access to "more than 400 stores to use as delivery hubs". Walmart is very much taking on Amazon and utilising its network to develop ecommerce and click & collect at its thousands of stores. In order for Amazon to get the volume growth they are looking for, fresh foods has to be part of the equation.

For those who might have been reluctant to buy Amazon's selection of produce and other grocery items online, Whole Foods' name alone might win them over. The deal on the surface seems valuable for stakeholders in both companies.

That said, there is some speculation that Amazon could end up changing its plans and ultimately use advanced technology inside Whole Foods stores. In an email to customers, the company said it planned to maintain the same standards under Amazon, including bans on artificial flavors and colors.

"I'm excited to see maybe if they do some kind of thing with Prime now and Whole Foods, that would be interesting to me", Hiddeman said.

The grocery market, a $750 billion sector in the US, is one of the few provinces in the retail world that Amazon hasn't managed to alter. Many of them, including local Walmart locations in Springfield, offer curbside pickup, and other stores offer delivery services.

"Instead of deliver to my home, why not just come down here?" "I think that this might be an opportunity for consumers who have felt that Whole Foods is inaccessible".

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