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Whole Foods, including Wichita’s, to stay open in Amazon deal

“Another issue is that it could accelerate the sales of online groceries because Amazon may leverage Whole Foods’ relationships with suppliers to sell on the Amazon.com website, which has 300 million customer accounts”, she added.”The conventional grocery store should feel threatened and incapable of responding”, Wedbush Securities analyst Michael Pachter said.”This is an quake rattling through the grocery sector, as well as the retail world”, Bankrate.com analyst Mark Hamrick said.Post acquisition, the supermarket chain will continue to operate stores under the Whole Foods Market brand. The Bentonville, Ark. -based retailer announced Friday that it had agreed to buy online clothing company Bonobos for $310 million.But if Amazon can be the one-stop shop for everything – groceries had been one of the key missing elements – customers would have even less of a need to go to Walmart or elsewhere. The company won’t be affected and Amazon will continue running Whole Foods under the original brand name.Though the news caused trepidation among leaders in the grocery industry, Amazon boosted its presence on Wall Street with the upcoming purchase. Whole Foods uses Azure Active Directory to enable its thousands of employees to sign on to cloud-based applications, which includes the Office 365 suite.While their merger is subject to approval by Whole Foods’ shareholders, regulatory approvals and other customary closing conditions, the two parties expect to close the deal during the second half of 2017.”Dominant players like Walmart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks”, O’Shea said. Amazon and Whole Foods are both climbing, and energy companies are rising as the price of oil moves higher.Trading of Whole Foods shares was halted, while Amazon rose 2.0 percent to $983.40 in pre-market trading. Amazon, which for years has been testing new technology and innovations in quiet corners, now would have a network of physical locations to test and implement those ideas.Meanwhile, Whole Foods stock soared on the news, jumping 29 percent. Jana’s move irked Mackey, who has referred to Whole Foods as his “baby”.But Whole Foods customers are loyal, and some shoppers are excited about Amazon’s purchase.The Amazon deal, experts said, will make doing all that much, much easier. “Whole Foods has to make money, Amazon doesn’t have to make money”. By enlisting Amazon, he gets to keep his job as CEO of the grocery chain. Amazon closed up 2 percent. The company is mulling the possibility of introducing home delivery.