Whole Foods customers react to $13.7 billion Amazon merger

“For the most part, it’s too expensive for me to do all may shopping there”, said Mary Funari, a Whole Foods shopper.The acquisition is seen as a move by Amazon to more aggressively target the grocery section of retail has proven more stubbornly resistant to digital channels.- Elemental Technologies, $296 million, video processing technology, transaction date 2015. On Friday it soared $9.62, or 29 percent, to $42.68, above the $42 a share Amazon agreed to pay. The deal, which is pending, sent ripples throughout the tech, retail, and financial industries.But Kroger’s market capitalization fell to $19.4 billion, Walmart’s fell to $222.7 billion, Target’s dropped to $13.4 billion, Costco to $74 billion, and SuperValu to $888.8 million. Whole Foods shares were up just over 27% to the $US42.00 per share acquisition price. “Add to that the fact that Whole Foods doesn’t have the dominant positioning it did even a few years ago, and that makes it even more likely for this deal to go through”. Amazon is buying Whole Foods Market: a $13.7 billion deal.Under the Amazon deal, it would continue operating stores under its Whole Foods banner, co-founder John Mackey would remain CEO, and Whole Foods would stay headquartered in Austin, Texas.PCC has also partnered with its competitor, offering delivery through Amazon Prime Now since April previous year.Dylan: But there’s definitely a lot more going on here than the fact that Whole Foods has 30 locations in MA.”Fresh foods are the final frontier for Amazon“, Portalatin said.There’s also the “grocerant” trend – a blending of grocery stores and restaurants.RICH TARRANT: Consumer purchases in a grocery space is, you know, $600-billion industry that has yet to be massively disrupted by online.In Whole Foods, it is acquiring a company that has recently come under pressure from investors for its lagging performance.Amazon will gain a footprint of 456 supermarket stores in North America and Britain with the acquisition of Whole Foods, boosting its delivery capacity and allowing it to compete directly with U.S. chains such as Kroger Co and Albertsons LLC.Whole Foods has more than 460 stores in the United States, Canada, and the United Kingdom. The deal comes just months after Walmart’s $3.3 billion purchase of Amazon competitor Jet.com.The S&P 500’s retail and food categories were hit particularly hard by the news – especially retail businesses who have expanded into the grocery realm in recent years.”This store has become a money-making machine”, said Tony Castro, a 40-year-old private chef, who shops daily in Whole Foods’ sprawling downtown Los Angeles store.Amazon, started in Seattle in 1994 by Bezos, a former hedge fund manager, has grown into the world’s biggest diversified online retailer, with a market capitalization of almost $500 billion.