Amazon continues to find success in the business world and expanding their empire. They changed the way millions of Americans shop with their online sales. Now they have announced that they are agreeing to purchased Whole Foods Market Inc for $13.7 billion and it’s a cash deal. Many believe that Amazon’s control of this large sector of the grocery industry will result in lower prices market wide, which could financially destroy some companies.
Dropping a bombshell on the U.S. grocery industry, online shopping giant Amazon.com Inc. said Friday it has agreed to buy Whole Foods Market Inc. for $13.7 billion in cash.
The deal’s announcement instantly sparked a selloff in the stocks of other major U.S. supermarket and big-box chains on expectations that Amazon would bring its low-price expertise and technology prowess to bear with Whole Foods, putting further downward pressure on prices in the already hyper-competitive, $611-billion U.S. grocery industry.
This is an earthquake rattling through the grocery sector,” Bankrate.com senior economic analyst Mark Hamrick said in a note to clients…
Whole Foods has 460 stores in the US, Canada and Great Britain. Although the company is based in Texas, it’s largest market share is in California, where natural and organic groceries have become extremely popular among yuppies and techies. Buying and eating natural and organic food is the fashionable thing to do, which makes Whole Foods a very popular and successful grocery store.