The online retailer Amazon announced its greatest partnership/acquisition yet, Whole Foods, for a whopping $13.7 billion. The deal should be completed approximately during the second half of the year. This partnership is a way for Amazon to dominate the future of grocery shopping together with AmazonFresh. However, the co-founder of Whole Foods, John Mackey, will still operate as CEO and its stores will continue to operate under that name as a separate unit of the company.
The launch of AmazonFresh has caused a lot of disruption in the profit forecast of retail giants like Kroger, Target, and Costco, among others.
However, Whole Foods is reputed for being overpriced and the company was even accused so by regulators in New York City. The company has also been a victim of several jokes of late-night shows for selling foods at high prices.
It would be kind of a challenge for Amazon, who has a reputation of keeping prices low, to deal with this problem. It is also worth noting that the stock of Whole Foods didn’t move much higher that $42, the price that Amazon has agreed to pay.
Will Bezos be able to turn the prices around for households to afford it? Leave your opinions in the comment section.
Source: | Amazon |
Via: | Engadget |
Image Credit: | Nasdaq |