Amazon Purchasing Whole Food For $13.4 Billion

Shockwaves were sent through the grocery industry on Friday when Amazon made the shocking announcement that they’d be purchasing the high-end grocery retailer Whole Foods for the “measly” price tag of $13.4 billion USD.

This is a major move for the e-commerce giant, as this merger will place Amazon in hundreds of neighbourhoods across the US and Canada, giving them a much needed edge in the brick-and-mortar retail game. Amazon has been struggling to get customers to switch to purchasing groceries online, something they have been offering for over a decade but have found that people prefer to buy their produce at physical locations.

This merger, however, will give them that much sought after edge as Whole Foods has over 460 locations in both the US, Canada and Britain.

This will also give Amazon a chance to freely advertise their Amazon Prime services (a $99/year membership fee) in Whole Foods locations, and possibly give members a chance to receive discounted groceries – similar to how Prime members can receive discounts at bookstores. Currently, 49 million Americans subscribe to the Amazon Prime services, which is estimated to make up about 44 percent of all households.

On the pop cultural side of things, the merger between Whole Foods and Amazon provided the Twitter-sphere with a ‘prime’ opportunity to make an easy joke.

Here are some of the reactions from those of us who won’t be making a $13.4 billion deal anytime soon:

2 responses to “Amazon Purchasing Whole Food For $13.4 Billion”

  1. Christopher says:

    This is the beginning of the end for brick and mortar grocery stores. You may say; how so, first they buy into the brick and mortar grocery stores, then they phase it out to online. Amazon got big from selling stuff online, that is their golden nugget.
    Shopping in the grocery store doesn’t work anymore, it’s painful to go to one, it’s slow, only 1-2% of employees in a grocery store know how to help you. It’s an overall miserable experience.

  2. torontogal12 says:

    when one company buys another it is not a “merger.” It is a “takeover.” It’s only a merger when companies equal in size join together. This blog keeps making this error.

    Anyway, maybe this move will finally get Canadian grocery stores into the e-commerce game. Walmart is really the only one that offers home delivery that isn’t just order and go pick it up at the store.

    Amazon probably doesn’t care about brick and mortar stores (this isn’t their bread and butter), but cares about the systems, supply chains and brand power that Whole Foods already has in place

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