Amazon Whole Foods Buyout: What You Need to Know
In June 2017, Internet retail giant Amazon made an announcement that it plans to buy Whole Foods Market organic food outlets – at a staggering price of 14 billion dollars.
Amazon’s new acquisition sends its head spinning – and of course the tongue language wobbled. But what do you need to know? How will Amazon’s massive purchase affect your weekly shopping trip to Whole Foods?
In this post, we will destroy everything about Amazon’s Whole Foods purchase.
Amazon’s Grocery Past
It’s no secret that Amazon wants to enter the grocery industry. Actually, they have created a shopping service, AmazonFresh, based in Seattle.
However, just because Amazon has been doing the movement, does not mean the deal has been done before – it will not happen until the end of 2017. Interestingly, Amazon CEO Jeff Bezos expect to face more stringent regulations because sometimes contentious relationship with US President Donald Trump.
If the political strings are withdrawn and the deal fails, Amazon will be forced to spend 400 million dollars on Whole Foods Market – it is a matter of divorce business settlement.
What will change?
First of all, many will be interested to know that both Whole Foods Market branding and CEO John Mackey will be replaced.
In general, most people who know feel that the biggest shift due to Amazon’s Whole Foods earnings will be the way people shop. As you might expect, experience is expected to become more focused on online grocery shopping.
While online merchandise shopping is certainly skeptical, Amazon’s reputation for delivering high quality products in other areas is likely to make consumers feel more comfortable with the idea.
Amazon does not seem to intend to cover the entire brick and mortar location of the Whole Foods Market. So if you’re afraid all of this will soon follow the Blockbuster-Netflix competition, think again.
Many believe that Amazon will offer an excellent grocery offering to those who already have Amazon Prime membership. Possible Prime members will be able to buy groceries to their homes for just $ 15 per month.
Of course, not everyone is happy with this deal.
Walmart especially feels that they are being threatened, and is considering switching from doing business on Amazon Web Services, a cloud-based computing system used by many businesses.
In addition, farmers and other food makers also slightly delay the agreement. They are afraid, as happened by selling books, Amazon will weaken everything, forcing them to drastically lower prices and increase their marketing to stay afloat.
That’s All You Need to Know about Amazon’s Whole Food Purchase!
Hopefully this article assures you that while, yes, most likely there will be some changes brought by Amazon’s Whole Foods purchase, most will be better.
Never fear, a thousand-year market – it looks like you will be able to continue to buy your coconut water and kale chips calmly! In business, however, things can change a dime. Keep checking with us for more updates on this deal.