Kroger, the nation's biggest supermarket chain, had earlier warned Wall Street of disappointing earnings. The Journal estimated that the Amazon announcement had wiped almost $29 billion from the aggregate market cap of rivals in the grocery category. "They're doing an awesome job and we want that to continue". The stock market seems to have already noted this possibility, with other supermarket stocks taking a hit in reaction to the news.
The building's footprint will be 855,000 square feet, but with three stories, the building will have a total of 2.4 million square feet inside.
Plans for how Amazon plans to integrate Whole Foods' cutting-edge organic and natural products and reputation for presenting innovative products to consumers into the e-commerce giant's existing dominance in other retail categories were not announced. Whole Foods (WFM) shares spiked 27% to $42, Amazon's offer price.
On Friday, Wal-Mart said it would buy Bonobos, a popular internet apparel retailer; a year ago, it acquired Amazon competitor Jet.com and appointed that company's chief executive, Marc Lore, to strengthen its e-commerce operation.
In March, Amazon launched a grocery pickup service. With sales falling, Whole Foods replaces almost half its board members Why do snack companies always change their packaging? Amazon also offers grocery shipments elsewhere, but that's tough with perishable foods.
NOGUCHI: Well, you know, grocers are, you know, generally, as I mentioned, are under a lot of financial pressure, Whole Foods included. The arrangement is pending shareholder endorsement, however, it is relied upon to close amid 2017's later half. Whole Foods will keep operating stores under its name.
Amazon has sent shockwaves through the retail world by announcing it's to buy grocer Whole Foods Market. That marks an 18 percent premium to Whole Foods' closing price on Thursday. Amazon has entered into a definitive merger agreement with Whole Foods over the acquisition though, so the sale is mostly a done deal. The shift started within minutes of the announcement online retailer Amazon would taking over the grocery chain Whole Foods.