Several analysts have said that Whole Foods’ urban and suburban locations are so valuable for Amazon’s delivery business that the deal could be worth it even if the grocer all but stopped selling food. “Amazon did not just buy Whole Foods grocery stores .
One article argued that because — likely thanks to the unexpected windfall of profits from Amazon Web Services — Jeff Bezos suddenly found himself with enough cash to do so, and saw the chance to rapidly expand into a coveted category in a way that would have taken Amazon years to do on its own.
A mazon announced on Friday that it will acquire upscale food market chain Whole Foods for $13.7 billion , giving the online retail giant a stronger foothold into the grocery business. The move is a strategic one for both companies: It comes amidst financial struggles at the organic food market while also boosting Amazon’s brick-and-mortar presence.
So, when amazon acquired whole foods?
To be the first to know, please click here. Amazon acquired Whole Foods for $13.7 billion on June 16, 2017 , and now, over seven months later, the purchase has appeared on Amazon’s annual balance sheet, CNBC reports.
Amazon announced on Friday that it will acquire upscale food market chain Whole Foods for $13.7 billion, giving the online retail giant a stronger foothold into the grocery business. The move is a strategic one for both companies: It comes amidst financial struggles at the organic food market while also boosting Amazon’s brick-and-mortar presence.
That means that the market thinks this acquisition created $14.3 billion in value through synergies (the total combined increase across the two companies) and the synergies were split up by giving $3.1 billion to Whole Foods shareholders and $11.2 billion to Amazon shareholders.
Amazon’s acquisition gives the company 431 physical Whole Foods locations to potentially flesh out new concepts. Amazon’s Prime Now service promises to deliver certain products — ranging from paper towels to electronics — in an hour or less, which Amazon sources from 70 fulfillment centers in the U.
What has changed at Whole Foods since it was acquired?
This article is more than 2 years old. It has been two years since Amazon acquired Whole Foods for $13.7 billion in cash. And over these two years, changes have been made to Whole Foods, at the corporate level and down to the individual store as well.
It has been two years since Amazon acquired Whole Foods for $13.7 billion in cash. And over these two years, changes have been made to Whole Foods, at the corporate level and down to the individual store as well. Some of these changes have been for the good, while others have left people questioning what has happened to Whole Foods .
Why is the price of Whole Foods so high?
One reason Whole Foods prices are so high is they stock less of the mass market goods and thus receive fewer deal dollars. Now Amazon can use Whole Foods to increase its volume in all products and dramatically increase its deal dollar inflow. Something that Amazon sorely missed as a “delivery only” grocer.