Amazon announced its acquisition of Whole Foods Market for approximately $13.7 billion. When Amazon presented its plans for the creation of a futuristic supermarket with no tellers or queues in December, where customers identify themselves with an ‘app’ on their mobile phone and a QR code on their way in, smart baskets point to everything they catch And leave with their purchase while it is automatically charged their online account, media and specialists began to speculate on where and when these stores would start to appear. Especially after the leak of some documents in which Amazon specified plans to open some 2,000 physical establishments in the next decade, at a rate of 200 per year. Now we have part of the answer.
With the purchase of Whole Foods yesterday, Amazon has hit with 460 supermarkets plagued by high-end organic products in the US, Canada and UK. It is the biggest step to date by the company to enter the gigantic business of selling food, which in the US moves between $700 million and $800 million annually. And for that he has paid $13.7 billion.
It’s important for Jeff Bezos, even more seen by looking at the recent history of its acquisitions: the largest is limited to 970 million in cash, for the video games of Twitch Interactive Inc. For Amazon it’s kind of I jump unprecedentedly forward. And the words by which Bezos hailed the operation in a note only partly explain the way it happened.
Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy. Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades—they’re doing an amazing job and we want that to continue.
Furthermore, Amazon can increase its availability of fresh products to send home, perhaps making them pay less than the current prices on the super “bio” shelves, but at the same time Stores as a delivery center for its products while saving on shipments.
Amazon is trying to differentiate the business and improve its image of the big “predator” of the world economy. Pointing to organic food can have its value in addition to presenting clear trade synergies. And it joins the announcement just a few days ago, when Amazon said it was ready to replace the banks by directly funding IMI in the United States, Great Britain and Japan. To date, it has been limited to offering funding only to some companies, chosen by their own algorithms.