Amazon’s desire to become the biggest grocer in the world got off to a good start on Friday when it announced the acquisition of Whole Foods Market for $13.7 billion.
Already, Amazon is one of the biggest online retailers known for attracting millions of shoppers to its website every month. With this new announcement, the company is set to become the biggest grocers in the world—and is expected to rake in billions of dollars in revenue annually.
Whole Foods Market is renowned for offering the best organic and natural foods in the world—and merging its business with another world-known ecommerce giant only means more good news for consumers. Ranked 28th in the world, Whole Foods Market has carved a niche for itself in terms of supplying natural and organic foods to shoppers, and will now become a part of a major force in online retail business.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Jeff Bezos, Amazon founder and CEO in a press release on Friday. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said John Mackey, Whole Foods Market co-founder and CEO.
Under the new arrangement, Whole Foods Market according to Amazon, will continue to operate the Whole Foods Market brand and source from trusted vendors and partners around the world. The retail giant also announced that John Mackey will remain as CEO of Whole Foods Market, while its headquarters will remain in Austin, Texas.
Despite this announcement, there remains the small matter of getting the approval of shareholders of World Foods Market as well as regulatory approvals before the deal can be finally closed. However, this should be regarded as mere formality as the deal is expected to go ahead without any hitch. As a matter of fact, all parties are expected to close the transaction during the second half of 2017.
Whole Foods Market was founded in 1978, and employs close to 87,000 team members, with around 460 stores around the US.
Amazon is revolutionizing shopping and making life easier for every one of its customers. The online retail giant recently launched a new store called ‘Amazon Go.’ Located in Seattle, the store replaces cashiers with technology you would normally find in self-driving cars.
Customers who visit the store use an accompanied app that enables them to pick any item of their choice, and walk out without stopping at the cashier section. Using a range of sensors, the Amazon app detects what a customer grabs in the store and bills it to his account if he doesn’t return it.
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