Amazon-Whole Foods deal hammers grocery stores; Dow ticks up
Amazon-Whole Foods deal hammers grocery stores; Dow ticks up
Amazon to buy Whole Foods Market in deal valued at $13.7 billion
20 Junio, 2017, 12:06
News of the deal sent shares of traditional retailers such as Walmart, Target, Costco and Kroger tumbling as much as 13 per cent as investors tried to digest the implications of an Amazon-backed grocery chain.
"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy", said Jeff Bezos, Amazon founder and CEO.
The Journal said buying Whole Foods allows Amazon to quickly grab a bigger portion of the estimated $674 billion US market for edible groceries, according to consulting firm Kantar Retail. Amazon is buying Whole Foods Market: a $13.7 billion deal.
Amazon has agreed to pay $42 per share in cash for Whole Foods, a 27 percent premium on the Austin, Texas-based grocer's closing share price on Thursday.
The deal for the 39-year-old, upscale Whole Foods, which has posted seven straight quarterly sales drops as competitors have increased their organic offerings and been more aggressive on pricing, follows its board shake-up and new cost-cutting plan last month amid pressure from activist hedge fund investor Jana Partners LLC. The acquisition would add Whole Foods' 87,000 employees to Amazon's payroll, which as of the end of the first quarter had 351,000 people.
Peggy Hall, a Unionville resident shopping Friday at a Whole Foods supermarket in West Hartford Center, said she would probably not buy food online.
That's frustrated investors saddled with a drop of almost 43 percent from the start of 2014 through Thursday, while the rest of the stock market marched 32 percent higher to record heights.
Meanwhile, in a letter to its customers, Whole Foods Market, Inc.
Whole Foods has already been reducing prices to try to turn around its worst sales slump since going public in 1992. The Journal said the acquisition "could make Amazon an overnight heavyweight in the all-important grocery business..."
Amazon boasts itself as No. 2 on Fortune's 2017 list of World's Most Admired Companies and Whole Foods as No. 28.
"The entry of the king of web retail into the food space has to rattle the other companies", said Brad McMillan, chief investment officer at Commonwealth Financial Network.
"I think we will be a bell-weather for what will happen around the country", said Ed Fox, marketing professor at the Southern Methodist University Cox School of Business.
The online retailer had been experimenting with brick and mortar retailing in recent years, but Whole Foods' sagging stock price provided the opportunity to take over an existing business, rather than build one from the ground up. Whole Foods CEO John Mackeyhad lambasted the hedge fund as "greedy bastards." It seemed unlikely that Instacart would hold on to its agreement to deliver for Whole Foods, soon to be owned by its goliath rival. According to multiple reports, Whole Foods also invested in Instacart.
With two goals on the board, Russia's midfield stopped taking risks and New Zealand struggled to create counter-attacking chances. Aleksandr Samedov's corner found Viktor Vasin who saw his header hacked clear by Michael McGlinchey.
La Dirección de Seguridad en su declaración señaló que el agresor incautado herido por su pie fue ingresado en el hospital. La Policía de París anunció que investiga un incidente en la Catedral de Notre Dame .
Agregó que 12 personas tuvieron traumatismos diversos, ocho heridos por perdigones y tres afectados por inhalación de gases. Según reportes de Salud Chacao y Salud Baruta la cantidad de heridos atendidos por ambas instituciones es de 117 heridos.
The one thing that didn't materialize was a large number of trades happening involving players teams didn't want to expose. Vatanen, a fifth-year player, won't be ready for the start of next season after having surgery to fix a shoulder injury.
Wahida Shahkar said the guards were attacked on their way to work at Bagram airfield, the main USA military base in Afghanistan. Last week, an Afghan soldier attacked USA troops at Camp Shaheen, in Mazar-e Sharif, injuring seven.
COPYRIGHT VIOLATION WARNING: This article was originally posted by Stock Observer and is owned by of Stock Observer. On average, analysts anticipate that Impax Laboratories will post $0.65 earnings per share for the current year.
Dems' motions, speeches knock GOP health bill for secrecy
He said that this is the only way to get something done, and if they fail to get something done, they will be voted out of office. Not complete silence followed by a vote that requires only a majority of 51. "If you get a copy of it, will you send me a copy?"
Ward vs Kovalev II: Round by round analysis
And, if you choose to make a defense for Kovalev's plodding battle plan, there were definitely the low blows. "I'm the pro. In terms of his future, Ward teased about a possible move to cruiserweight or even heavyweight.
Jay Sekulow: This Is A Manufactured Investigation
Sekulow again repeated that he can not read minds. "You're asking me now questions about what people are thinking in their minds", Sekulow told Wallace . "No, he's not being investigated", Sekulow interjected.
PM condoles demise of Justice PN Bhagwati
In Maneka Gandhi case, the SC had ruled that Right to Life is no mere animal existence but it meant Right to Live with Dignity. Justice Bhagwati had participated in the Freedom movement and courted arrest in 1942 and had gone underground for four months.
Paris air show off to a flying start
The two companies have also reached an agreement to collaborate on securing additional third-party fleet servicing agreements. Airbus chief Fabrice Bregier said on Monday the company was in talks with several potential customers for the upgraded plane.
79 people presumed dead in London tower fire
Officials are using dental records, fingerprints, DNA samples, tattoos and scars to try and positively identify victims. One of the family's daughters said the community had been "very nice" and the family were getting help.