Deal largely seen as a way for Amazon to move more into the brick-and-mortar space.
E-retailer Amazon has announced it plans to acquire Whole Foods Market in a $13.7 billion deal, solidifying its position in the supermarkets and grocery store industry.
According to Mergermarket, the bid is not only one of the decade’s top grocery deal in the US, but is also the fourth largest US deal in the retail subsector. The deal is largely being seen as a way for Amazon to move more into the brick-and-mortar space, which is not new for the company.
“We’ve seen Amazon expand recently into physical, brick-and-mortar stores, for example their new bookstores and Amazon Go, their small grocery store experiment that doesn’t require a customer to go through check out,” says Elizabeth Lim, senior analyst for Mergermarket.
Whole Foods holds a 2.7 percent market share in the $611.9-billion grocery store industry. According to Madeline Hurley, IBISWorld senior analyst, this acquisition means Amazon will be able to reach more consumers than ever before.
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