Amazon.com, Inc. makes the largest ever merger and acquisition deal in the US history for the grocery industry. Moreover, the giant, Amazon jolts the grocery industry buying Whole Foods Market.
Amazon & Whole Foods MarketAmazon and Whole Foods Market are analogous to reindeer and penguin. One is a sophisticated tech giant while the other is a brick-and-mortar. The electronic commerce company dominates the tech industry while Whole Foods Market is the star among the groceries. Amazon is prominent for its unbeatable low pricing while Whole Food is famous for its premiums. The supermarket company has a title, “Whole Paycheck” for charging a premium price. In fact, Whole Foods sells absolutely natural foods. It has reputation for workplace culture as well.
Nevertheless, both of the multi-billion dollar companies have similarity on a ground that their owners are the two of the smartest entrepreneurs.
Amazon, Whole Foods Merger & Acquisition DealsThe $13.7 billion merger & acquisition (M&A) between Amazon and Whole Foods is the largest deal ever for Amazon. Eventually, the deal is 20 times larger than its previous 70 deals combine. The deal will go through later this year. As we learned, Amazon won’t change the name Whole Foods. Additionally, the CEO and headquarter of Whole Foods remain same too. However, right after announcement Amazon stock rose 2% while Whole Foods stock rose as much as 30%.
Benefits for AmazonFrom this deal, Amazon will get benefits from different angels. Whole Foods Market has 30 locations across 42 states of USA. In fact, the supermarket company has 460 stores in total throughout USA, Britain, and Canada. Amazon can all these locations as distribution centers. Moreover, Amazon’s drones will be able to serve fast as they will be in customers’ vicinity.
Amazon- Whole Foods Deal pressurizes its competitorsThe Amazon- Whole Foods deal will certainly pressurize its competitors. Particularly, Walmart might have a big hit as experts predict. In fact, stocks of competitor groceries, Kroger, Target, SuperValue, and Costco already plummeted.
Some of the conscious minds ponder whether the physical grocery stores will fate to an end like bookstores.