Jeff Bezos has gone shopping.
The founder and CEO of Amazon.com the giant retailer has purchased Whole Foods grocery supermarkets for $13.7 billion.
The story was reported by CNBC.
Amazon has a vision of building 2,000 brick and mortar supermarkets over the next ten years. They now have Whole Foods..
John Mackey, founder of Whole Foods, will remain CEO of the grocery store chain after the deal closes, and the store will continue to operate under the Whole Foods brand.
They are looking to capitalize on the next big trend in grocery shopping…
Online grocery delivery.
Whole Foods has had issues. They have been called the ‘Whole Paycheck’ because they have known to charge higher prices to consumers.
Despite the dominance of Amazon they will still have challenges. Companies like Publix, who opens supermarkets in Virginia this month, and Kroger are well situated because of this.
Publix has supermarkets close to its consumers.
The supermarket is fierce and now Amazon making its market buying Whole Foods the competition will only increase.
“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,” Mackey said in a statement.
As reported by CNBC:
Whole Foods has been under pressure from Jana Partners hedge fund and money management firm Neuberger Berman, which have called on Whole Foods to sell itself. The investors have criticized Whole Foods for its poor performance, and have suggested the chain could be merged with another grocer
More details on this amazing deal to follow.