From The Seattle Times:
Amazon to buy Whole Foods for $13.7 billion in bid to become major grocer
Amazon.com said it would buy Whole Foods Market for $13.7 billion, its biggest acquisition ever and a huge move into the grocery space it’s been trying to crack for a decade.
The deal, expected to close in the second half of this year, gives the e-commerce giant — which has been experimenting with various physical store concepts to make itself a name as a food purveyor — an instant expanse of 460 high-end brick-and-mortar stores across the U.S., in Canada and in the U.K.
Whole Foods, which made its name retailing organic and fresh products, had been struggling recently amid stepped-up competition from Costco Wholesale, Trader Joe’s and other grocers.
But in the hands of Amazon it would be a potent weapon against archrival Wal-Mart, the world’s largest retailer, which dominates the grocery world and has been stepping up its e-commerce game. It’s also probably the largest untapped opportunity in e-commerce, says Cooper Smith, who closely tracks Amazon at L2, a research firm.
Talk about a win/win scenario - great for Amazon and it takes the pressure off Whole Foods. I do shop occasionally at the Bellingham Whole Foods - they have a few items I really like but it is not my go-to for regular grocery shopping.
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