Whole Foods Market acquired by Amazon
The transaction is expected to close during the second half of 2017 and is subject to approval by Whole Foods Market shareholders, regulatory approvals and other customary closing conditions. Amazon agreed to buy Whole Foods for 13.4 billion USD, in a deal that will instantly transform the company that pioneered online shopping into a merchant with physical outposts in hundreds of neighborhoods in the United States.
The acquisition is a reflection of both the sheer magnitude of the grocery business with more then 800 billion USD in annual spendings and the desire that Amazon could turn into a more frequent shopping habit becoming a player in the food sector.
Beleaguered by heightened competition and six quarters of same-store sales declines, Whole Foods had recently cut its full-year sales and profit forecast and revealed plans to close 9 of its 469 stores in the recent quarter. Whole Foods is best known for its organic foods, building its brand on healthy eating and fresh, local produce and meats.