Amazon's purchase of Whole Foods already impacting grocery industry

Amazon is once again shaking up the retail sector with the announcement Friday it will acquire upscale U.S. grocer Whole Foods Market known for its pricey organic options in a deal that underscores the online giant's growing influence in the econo

The deal would give Amazon control of 430-plus U.S. Whole Foods stores, almost all of which are in neighborhoods more affluent and younger than America as a whole, noted David Portalatin, the NPD Group's vice president of food industry analysis.

Among those brick-and-mortar experiments was a cashless payment system.

The grocer will continue to operate stores under the Whole Foods Market brand, and Mackey will remain CEO, the companies said.

Completion of the transaction is subject to approval and the parties expect to close the transaction during the second half of 2017.

With this strategy, Amazon is planning to make the prices competitive and attract "more low- and middle-income shoppers" to its retail stores, which may still be located in posh localities. "Amazon is the master at keeping as much margin as possible". Increasingly, we'll be doing everything from home.

About 9.7 billion shares changed hands in USA exchanges, well above the 6.8 billion daily average over the last 20 sessions. But if customers know that what they are getting is the same as what they'd get at the local store, they are more likely to try it out.

Walmart has been trying to address some of those online threats, pushing harder into online to build on its strength in its stores and groceries. But there have been challenges. Jana had pushed to shake up Whole Foods' board of directors, among other changes. At least, I do! Amazon's warehouses, on the other hand, do use these robots to keep things moving. And figuring out how to get it to your front door is the ultimate inconvenience for consumers. Whole Foods whose fleet of stores now numbers more than 430 locations has found it hard to attract more mainstream consumers as Walmart and other large chains have stepped up their sales of natural and organic products. This deal gives Amazon a major foothold in that space. It's easy to imagine that Amazon might later decide to integrate this technology from its warehouses to its Amazon Go shops, and probably Whole Foods stores, too.

Especially among millennials, is that right?

"Maybe feels hyperbolic but I think it could be one of the biggest acquisitions in the last 20 years in terms of the ability to kind of bring together technological innovation and this sort of physical footprint that Whole Foods has", Bunch said.

Yes. That's an extraordinary penetration for a supermarket chain with just 431 stores.

Many deals don't receive an appropriate level of regulatory scrutiny.

As sales have slumped, Whole Foods executives have tried to highlight what distinguishes it from rivals. Will we just be stopping by to pick up what we ordered online?

Related news:

Hot News

isis-killer-beheading-video-story-top Warren Gatland concerned at All Blacks targeting of halfback Conor Murray
Jun 26, 2017 - 01:22
We needed to stop the Springboks' driving maul while competing better at the scrum. Asked if he had trained on the wing for the Lions , Joseph said: 'Not massively.

isis-killer-beheading-video-story-top Tebow being promoted to Mets' affiliate in Florida
Jun 26, 2017 - 01:16
Well, it seems as if the New York Mets' Tim Tebow saga continues, even after throwing his bat halfway up into the stands. The former National Football League quarterback will move on to the St.

isis-killer-beheading-video-story-top Eid-el-Fitr: Trump greets Muslim, no celebration in White House
Jun 26, 2017 - 01:13
My greetings to all Nigerian Muslims and our brother Christians on the occasion of Eid-el-Fitr. In some parts of the world, Eid will be celebrated on June 26.

isis-killer-beheading-video-story-top North Korea does it again, conducts another rocket engine test
Jun 26, 2017 - 01:10
Tubby tyrant Kim Jong-un has test fired a number of missiles this year after threatening his enemies in the South and the US. Warmbier was arrested in the North in January 2016 while visiting North Korea on a tourist visa.

isis-killer-beheading-video-story-top Toll from Pakistan Tanker Fire Climbs to 148
Jun 26, 2017 - 01:09
Army aviation helicopters had been sent for the evacuation of casualties to hospitals and burn centers, Ghafoor said . While Saudi Arabia and most other Muslim countries celebrated the holiday Sunday, Pakistanis will celebrate Monday.

isis-killer-beheading-video-story-top Apple is launching an iMac Pro and new iPad Pro models
Jun 26, 2017 - 01:02
The iOS 11 mobile operating system now paves way to fantastic possibilities for augmented reality in games as well as apps. This was a seamless experience for the iOS users and their device took all the hassle of filling your details.

isis-killer-beheading-video-story-top Red Sox retire No. 34 for David Ortiz
Jun 26, 2017 - 01:02
Asdrubal Cabrera wants to be traded after the Mets moved him from shortstop to second base for Friday's game at San Francisco. And in the visiting clubhouse, Albert Pujols said Ortiz was the one peer he would call to help snap a slump.

isis-killer-beheading-video-story-top 'Transformers: The Last Knight' Launches With $5.5M in Previews
Jun 26, 2017 - 01:00
Hold the hallelujahs: Bay has set a pattern that can go on poisoning the well as long this stuff turns a profit. Josh Duhamel , Tyrese Gibson, and John Turturro reprise their roles for the first three Transformers movies.

isis-killer-beheading-video-story-top Jordan Spieth birdies 18th to keep Travelers lead
Jun 26, 2017 - 00:58
She had her lowest score on the LPGA Tour and matched her professional best set in the 2012 Australian Ladies Masters . It's often the putter that betrays Weekley, where he ranks 200th or higher on tour in every statistic on the greens.

Celtics 'appear to be leaning' toward Jayson Tatum, not Josh Jackson
Jun 26, 2017 - 00:55
Another said the Celts were looking at perhaps moving down in the draft again and picking up another asset for their trouble. I'm a big fan of them. "I think they got a very good player in Jayson Tatum , but that doesn't mean [Jackson's agent] B.J".

76ers already trolling Lonzo and LaVar Ball after No. 2 pick
Jun 26, 2017 - 00:54
You see Jason Kidd". "I'm truly blessed to be able to play in my hometown, and I can't wait to get on the court". Point guard D'Angelo Russell was picked in that spot in 2015, followed by small forward Brandon Ingram in 2016.

isis-killer-beheading-video-story-top US Lawmakers Urge Trump to Press India's Modi on Trade, Investment
Jun 26, 2017 - 00:54
Mr Modi will also meet USA secretary of state Rex Tillerson and U.S. secretary of defence James Mattis. India denies that and says it will continue to be part of the accord, regardless of US participation.

isis-killer-beheading-video-story-top Real Madrid reject Mourinho contract allegations
Jun 26, 2017 - 00:54
Naturally, Old Trafford emerged as the most likely destination for the 32-year-old, the ground he spent six remarkable seasons at. Ronaldo, who is now facing four charges of tax fraud in Spain, was reported to want to leave Real Madrid and Spain.

Josh Jackson Fires Wild First Pitch Before Diamondbacks Game
Jun 26, 2017 - 00:53
When the Celtics traded down , Jackson said it was too late to set up a new workout and it cost Josh one draft spot. And when asked about what he did for his short stay in Sacramento, Ainge took shots at the city in the process.

isis-killer-beheading-video-story-top Not 'that far off' from passing health overhaul
Jun 26, 2017 - 00:53
The GOP senators who joined Johnson in the Thursday statement were Ted Cruz of Texas, Mike Lee of Utah and Rand Paul of Kentucky. Referring to Republican senators opposed to the bill, he added: "They want to get some points, I think they'll get some points".