WEB Notes: The global consolidation continues. I continue to hear more and more people using services like Amazon Pantry where food is now shipped to your house. We live in amazing times, the digital age has and continues to connect us in ways we never thought. It will only continue. Think about local business however, they are being devastated by things like this. When we shop online, local retailers lose out. This will dry up local jobs and instead create large hubs where employment will be based out of these factories and shipping facilities ie: cities instead of towns. It will be interesting to see what our world looks like in just five years. 2017 is on pace for a record amount of store closures. Part of it is due to the economy, but I feel a major part of it is the reasons just outlined. Everything about our world is changing.
Amazon.com is set to purchase Whole Foods Market for a whopping $13.7 billion. This major deal is already showing signs of a ripple effect across the entire grocery chain and organic market.
As Whole Foods and Amazon saw stock market growth in light of this news, Wal-Mart and Kroger stock plunged on Friday.
Amazon has agreed to pay $42 per share in cash for the mega-organic chain. Reports indicate that Whole Foods co-founder, John Mackey will continue to ‘run the business’ however it isn’t clear at this point how the organic chain will be affected post-buyout.