to acquire Whole Foods at US$42 per share

Amazon is making a bold expansion into physical stores with the $13.7 billion deal to buy Whole Foods, setting the stage for radical retail experiments that could revolutionize how people buy groceries and everything else.

Armed with giant warehouses, shopper data, the latest technology and almost endless funds - and now with Whole Foods' hundreds of physical stores - Amazon is set to reshape a US$800 billion grocery market that is already changing rapidly. All of a sudden, that patent approval seems a lot more ominous, given that this move gives the online retail giant immediate brick-and-mortar access to a certain type of consumer with disposable income.

Amazon runs their own online grocery - Amazon Fresh - which started a decade ago in Seattle, Washington. It operates approximately 456 stores in the United States, Canada, and the United Kingdom.

Jana, which disclosed an 8.3 percent stake in Whole Foods in April and is the company's second biggest shareholder, stands to make roughly $300 million from the sale to Amazon.

Online delivery of groceries so far has been tough for any company to pull off because of customers' concerns about the quality of meat and produce, Wedbush Securities analyst Michael Pachter said.

Texas-based Whole Foods Market is engaged in the business of natural and organic foods supermarket.

When it raised $400 million in March, Instacart said it operated in 35 markets and had 135 partnerships with grocery retailers around the country.

58 people missing and presumed dead in London fire
Building officials have not commented since the fire. 24 people remain in hospital, with 12 of those people in critical condition. Construction company Rydon made the refurbishment of the block worth Rs 8.7 million pound and was completed in July 2016.

The AP reported that Campbell Soup, Hormel, General Mills and Sysco shares fell between 3.2 and 3.3 percent, while United Natural Foods shares dropped 8.6 percent.

Amazon also has been testing automation technology at a Seattle convenience store that's now open only to Amazon employees.

The merger offers a test of whether Amazon, which has generally built its business on low prices, can successfully integrate into the mainstream a grocer known for premium service and higher prices.

"It's convenience, right? We all live a busy, hectic life", Bradford said.

Kroger's market value also stands at just $16.5 billion, so less than what Amazon is offering for Whole Foods. Whole Foods shares were trading just under that level in early trading on Friday, as investors saw negligible regulatory risk to the deal closing.

Amazon already offers grocery-delivery services in some cities but customers seem excited at the prospect that the Whole Foods deal will make food at your doorstep even easier.

Amazon could also get a better picture of customers by marrying data from Amazon and Whole Foods' loyalty programs. Certainly, it would appear to Cantillon that Bezos sees the future as slightly more nuanced than the vista of couch-bound online shoppers ordering everything from fast food to films online. The acquisition price implies a trailing 12-month price-to-earnings multiple for Whole Foods of 31 times, versus a 14.4 average for the S&P 500 Food Retail index.

Recommended News

  • Lawyer: Trump Tweet Was A Reaction, Not Admission To Being Investigated

    Sekulow , however, said Trump's tweet from Trump was specifically directed at a "fake" media report with no "documented sources". Rubio sits on the Senate Intelligence Committee, which is conducting its own probe into Russian election meddling.

    Britain eyes Brexit deal 'like no other in history'

    Once agreement has been made in this phase of the talks, the second phase discussing the future trade relationship can begin. Discussions over a trade deal is meant to be held until stage two of the talks, which is expected to be this winter.

    Victims of Orlando Pulse nightclub shooting remembered at vigil

    Exactly one year ago, the city of Orlando experienced the horrors of the worst mass shooting in US history. Later Monday morning, hundreds of people dropped off flowers, drawings and cards at a memorial near Pulse.
  • 'Father's Day for Philando' protest outside St. Anthony Police Dept

    Anthony on Sunday to remember Philando Castile and demonstrate against the acquittal of Officer Jeronimo Yanez . Lines were set up well away from the protesters on the freeway and police waited them out.
    Japan: Missing US sailors found dead in Fitzgerald destroyer

    Japan: Missing US sailors found dead in Fitzgerald destroyer

    Navy destroyer USS Fitzgerald collided with a container ship were found in flooded compartments of the damaged ship, the U.S. They are especially congested in the early hours of the day, with ships carrying cargo for early morning delivery in Tokyo.

    McGovern: Judge's ruling finds Michelle Carter's words killed Conrad Roy

    Michelle Carter , who was 17 when she committed the crime, was talking to her then-boyfriend via text during a suicide attempt. Prosecutors said, when he left the truck, Carter instructed him to " get back in ", which eventually caused his death .
  • Will Trump Executive Order Boost Restaurant Jobs?

    He said he recommended to the administration that all apprenticeships be registered, but Trump's order does not require it. President Trump can not claim to support American workers with apprenticeships when his budget tells a different story.
    Trump's Paris decision is a boon for Plains states

    Trump's Paris decision is a boon for Plains states

    These aren't just the conclusions of the overwhelming majority of climate scientists, they are also shared by the U.S. If the White House is not providing that leadership, we will find that leadership in other places.
    WRAPUP 1-Turkish president says Qatar isolation violates Islamic values

    WRAPUP 1-Turkish president says Qatar isolation violates Islamic values

    Pakistan has also said it will not take part in any military action against a Muslim country. According to the statement, reciprocal military visits have been ongoing since October 2015.
  • Body Of Teenage Girl Found In Wigan's Orrell Water Park

    Body Of Teenage Girl Found In Wigan's Orrell Water Park

    Friends have described Ellen Higginbottom as a "lovely and caring young girl" who will be remembered for her love of horses. Ellen was reported missing on Friday after she had failed to return home from Winstanley College, where she studied.

    Portugal frustrated by late Mexican equaliser at Confederations Cup

    Mexico coach Juan Carlos Osorio: "We played the European champions on equal terms, we generated chances but couldn't finish them". Portugal players will wear black armbands against Mexico in the today to honour compatriots that passed away from forrest fires.

    NHL: Looming expansion draft turns up trade chatter

    There was no way David Poile wasn't going to protect his top four defensemen , and this is the price the Preds have to pay. It doesn't make sense unless they have a deal in place with Vegas so they don't select a forward, such as Josh Bailey .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.