Published: Wed, June 28, 2017
Business | By Max Garcia

Potential Impact Of 'Game Changing' Move As Amazon Buys Whole Foods

Potential Impact Of 'Game Changing' Move As Amazon Buys Whole Foods

Cantor Fitzgerald views Amazon's acquisition of Whole Foods as a potentially transformative transaction for Amazon and for the industry overall, as it firmly establishes Omnichannel commerce as a the new standard in retail. They put the customer first in everything they do and think backwards.

Despite a recent sales slump, Whole Foods still has a passionate following among foodie shoppers.

Whole Foods now has 460 stores across the US, Canada and the United Kingdom, with nine of them in Britain.

Amazon CEO Jeff Bezos said they want Whole Foods to continue doing the "amazing job" that they're doing.

Amazon.com, Inc. AMZN on Friday announced that it has reached a deal to acquire leading natural and organic foods supermarket, Whole Foods Market, Inc.

The chief executive of the America's largest whole foods grocery chain, which has been ranked for 20 consecutive years as one of the "100 Best Companies to Work For" in America by Fortune magazine, also spoke about options for its staff that will come from its new parent company, Amazon.

"We're gonna evolve", Mackey said.

The US$13.7 Billion deal is the largest yet for Amazon, a whopping 70 times larger than its other 70 deals combined, and experts say that when Amazon arrives in Australia, it could happen here too.

"We will be joining a company that's visionary", Mackey said. Retail experts also told the Wall Street Journal that Amazon and Whole Foods are likely to gather data from customers both online and in-store to figure out what kinds of goods they should stock in stores, and even how they should be displayed.

Amazon has been longing for a piece of the action and despite the launch of AmazonFresh over a decade ago, it is an industry that Jeff Bezos has found hard to get into.

In reality, Amazon informally looked at acquiring Whole Foods previous year, according to people familiar with the matter. He noted that Amazon was known for its innovation.

Jefferies' Brian Fitzgerald provides some more in-depth analysis of the strategy behind the deal: We believe the WFM (Hold) acquisition would give a boost to AMZN's efforts with Fresh which was launched 10 years ago and operates in 20 metro areas in the United States and overseas.

When asked about how benefits and compensation would synch up for Amazon and Whole Foods employees, Mackey joked that everyone would get free Amazon Echos.

A recent AJP poll revealed most of our readers (39%) do not support Amazon entering the pharmacy arena in Australia.

Moody's lead retail analyst Charlie O'Shea said the deal could be "transformative, not just for food retail, but for retail in general". Through AmazonFresh, Prime members in select cities can shop online for produce, everyday items, and favorites from their neighborhood shops and restaurants, and then choose to have them delivered or pick them up in a drive-through location.

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