Amazon.com Inc said it would buy Whole Foods for $42 a share in a $13.7 billion deal, achieving a 27% premium to Thursday’s stock closing price. The deal is the largest acquisition in Amazon’s history.
Reporter:
Amazon’s biggest purchase in its history reveals the company’s goal to combine both online and offline retail together, expanding further its unmatchable retail kingdom.
The deal caused stock prices to fall from a number of grocery chains, including Walmart, Costco, Kroger and Target.
Over the past few years, Amazon has represented the rapid development of the online retail industry; changing consumer’s habits and making people convert to computers and apps to shop. Because of Amazon, many large retail chains had to lay off staff and close stores to survive, some filed for bankruptcy. In 2017 alone, Sears is expected to close 66 stores, JCPENNEY will be closing 138 stores, and Macy’s 68 stores.
Previously, the only retail industry not affected by Amazon was the supermarket industry, due to the purchase of fresh food, fruit, etc., people still go grocery shopping. Whole foods supermarket is America’s largest natural food and organic food retailer, with more than 431 stores in the United States, Canada and United Kingdom.
