17 Jun Amazon to Acquire Whole Foods
Amazon announced this morning that it is acquiring the organic grocery chain, Whole Foods for $13.7 billion. The deal works out to be $42 per share and is an all cash deal. Whole Foods has recently been under pressure from activist investors, and this deal looks like that pressure will be relieved.
This deal is fascinating on many levels, but it overall it reinforces Amazon’s mission to sell to the world anything and everything. Another theme that this deal also fuels is Amazon’s push into brick and mortar retail locations. With their recent opening of an “offline” bookstore, Amazon continues to buck the retail trend of lagging sales and consolidation.
The acquisition of Whole Foods also allows Amazon to a huge test bed of locations to continue to refine their Amazon Go check out concept. Perhaps the plan for Amazon was to buy the distribution channel for this technology all along, but either way Whole Foods, on that level, looks like a good acquisition, economic aside.
So, the trend of retail’s decline continues, but with the 800-pound gorilla, Amazon feasting on the spoils.