Amazon's Purchase: What this Means for other Grocery Stores

Amazon is buying Whole Foods in a deal valued at about $13.7 billion a strong move to expand its growing reach into groceries

The acquisition stands as a huge boost for Amazon's strategy to integrate the brick-and-mortar model into its business.

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.

"I'm excited to see maybe if they do some kind of thing with Prime now and Whole Foods, that would be interesting to me", Hiddeman said. Investors are likely anxious that Amazon, once entrenched in the physical grocery store business, will ruthlessly cut prices for food products like it did with books. Online juggernaut Amazon announced Friday, June 16, 2017, that it is buying Whole Foods in a deal valued at about $13.7 billion, including debt.

The deal comes after Seattle-based Amazon spent almost a decade trying to find a way into the fresh-food delivery business through various endeavors, without much success. What's more, it also isn't planning to lay off employees, according to a spokesperson.

CNBC noted: "Whole Foods would be required to pay Amazon a $400 million breakup fee if the deal is broken for another bidder". The shopper's Amazon account gets automatically charged. The service requires an app to be installed before entering the store. It was recently granted a patent for technology that would block shoppers from comparing prices using their mobile devices while they are in stores.

Amazon Go doesn't employ robots to stock shelves - at least not yet.

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Amazon is considering extending the cost-cutting effort with the no-checkout technology it's developing at its Seattle convenience store, "AmazonGo", according to the person familiar with the matter, who asked not to be named because the plans are private.

Whole Foods is one of its earliest partners and perhaps its sexiest one.

Hartmann said he expects the online retailer to introduce some efficiencies to Whole Foods' operation. Last year, Evercore poached Goldman's head of activism defense Bill Anderson, who for more than 12 years had advised more than 175 companies on how to tackle activist investors and hostile bids.

"The quality will give to provide a cheaper price to consumers", said Whole Foods Shopper Hamid Fhehollahi. The company, however, has faced fierce competition from neighboring retail chains, particularly Costco, Safeway, and Walmart. It has been stated that chief executive Jeff Bezos plans on keeping the extravagant brand image of Whole Foods, for providing premium fresh groceries, intact while slashing down the prices.

The deal would give Amazon control of 430-plus U.S. Whole Foods stores, almost all of which are in neighborhoods more affluent and younger than America as a whole, noted David Portalatin, the NPD Group's vice president of food industry analysis.

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