NPR's Alina Selyukh reports. The online retailer had been experimenting with brick and mortar retailing in recent years, but Whole Foods' sagging stock price provided the opportunity to take over an existing business, rather than build one from the ground up.
CHRISTY DAVIS: Nice atmosphere when you're shopping. Analysts say the Whole Foods footprint and distribution channel could theoretically make 5-minute deliveries a reality.
Department stores have shed 46% of their workers since 2001, a greater percentage of their jobs than coal mines or factories have lost over the same period.
JOHN MACKEY: We do have shareholder activists that are trying to put pressure on management. It announced last Friday that it had agreed to buy online clothing company Bonobos for US$310 million. They're mostly about their own short-term financial interests.
"The retail sector is used to change, but every so often an event occurs that shakes the industry to its core", said Neil Saunders, managing director of research firm GlobalData Retail.
June 16 A decision by Goldman Sachs Group Inc previous year to move an investment banking veteran to Seattle, as well as Evercore Partners Inc's hiring of a top banker defending companies against activist investors, has paid off handsomely. He's got professional respect for Amazon for how efficiently and successfully it runs its business. According to the source, Whole Foods reaffirmed its partnership with Instacart on Friday. The app would then have automatically charged whatever products they took out of the store with them to their Amazon account.
This latest deal "would worsen the already severe damage that Amazon is doing to America's competitive, open market system", Lynn said.
Yesterday, Amazon stunned everyone when it revealed that it had agreed to buy out Whole Foods Market for a monstrous sum of close to $14 billion. He also added that "If Walmart loses the grocery battle to Amazon, they have no chance of ever dethroning Amazon as the largest e-commerce player in the world". At some of the Whole Foods 365 locations, the grocer's discounted brand, consumers can use iPads to order food or find a bottle of wine.
"I wish I could, but I don't know how to use the internet", she said.
The investment banks that advised Amazon and Whole Foods on this deal (Goldman Sachs, Evercore Partners) will surely make tidy sums if it is approved. He says he's excited to try out whatever they offer.
Grocery stores are under more pressure to compete based on convenience, especially as more retailers and startups introduce food options such as meal kits, low-priced snacks and organic groceries, according to a report released earlier this year by Jones Lang LaSalle, a commercial real estate firm.