Amazon reportedly planning to cut jobs at Whole Foods

Cheryl Sanders
June 20, 2017

Amazon revealed on Friday that it will buy Whole Foods for 42 U.S. dollars per share (£32.80), ramping up its stake in the global grocery market following the launch of AmazonFresh, which entered the United Kingdom market previous year.

Amazon's acquisition of Whole Foods for $13.7 billion is the largest acquisition to date by the Jeff Bezos-led company, and the most important merger in the retail industry.

Mackey and Amazon's CEO of Worldwide Consumer Jeff Wilke spoke in an excited manner about the deal to employees at a town hall meeting on June 16, according to an SEC filing released Monday afternoon.

Lee Vann, Chief Strategy Officer of Captura Group. Gartner retail analyst Robert Hetu said Amazon could bring pieces of that to Whole Foods to further cut costs.

The takeover shows that $250 billion dollar company acknowledge that when it comes to grocery, customers prefer a physical presence to clicking buttons. He added that Whole Foods had been doing a wonderful job for the last 40 years and Amazon would like to continue doing so after the acquisition. Warehouse stores, which have expanded into grocery sales, were also down, Costco by more than 7 percent and Wal-Mart by almost 5 percent. News of the acquisition sent Amazon's share price up 3.5 percent while shares in other supermarkets dropped, clearly spooked by the news, including Walmart and Tesco dropping six percent each.

Amazon is planning a bloodbath at Whole Foods, according to a report.


The entire e-commerce field similarly was thrown for a loop. What impact will this change in the retail market have on the three-tier system?

What do you think it will be like to walk into a Whole Foods 10 years from now? Jana Partners now owns 9 percent of Whole Foods Market.

"I think the most important aspect of the purchase is that it gives Amazon 440 refrigerated distribution centers in the USA and probably puts their distribution presence within 10 miles of 80% of the population and within 90% of the wealthy population", he wrote in an email to CNBC. With their entry, the German companies will strengthen their presence in a market with high growth potential.

Walmart also announced on Friday its purchase of online fashion store Bonobos for $310 million.

Walmart could respond with its own e-commerce furniture buy. Walmart has about 4,700 US locations, with plans to offer curbside grocery pickup at 1,100 by the end of this year.

Oppenheimer, too, sees more upside; analyst Rupesh Parikh raised his price target on Whole Foods to $45. As the Amazon boss gets richer, Gates, on the other hand, created Giving Pledge with Buffett, asking millionaires to commit to give away at least half of their money during their lifetimes. "They could buy an apparel line or they could look into media".


When the dust finally settled on Amazon.com, Inc.

In addition, it has the necessary cash to invest and be aggressive, with the support of its current suppliers and those it keeps adding. A quicker and fresher delivery of its goods, which will prove beneficial as Amazon continues the rapid expansion of its online and physical grocery delivery business.

The company opened its first physical food store in Seattle previous year, as well as a host of Amazon Books stores.

The idea has been described as "brilliant" by analysts, who see it as a "natural evolution".

Mackey admitted that Whole Foods is behind in technology and will be relying on Amazon to inject it with some much-needed updates. With intense competition in the grocery industry from discount European chains like Lidl and Aldi entering the arena, Amazon will be working hard to beat competitors on prices. While watching closely, retailers can take steps to mitigate Amazon, blocking and tackling along the way.

Retail shares were sold off following the announcement amid fears Amazon would disrupt the wider industry as it has done to bookstores and music sellers.


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