Money Amazon's deal to buy Whole Foods hits shares in US retailers

06:35  18 june  2017
06:35  18 june  2017 Source:   Press Association

Amazon to buy Whole Foods for $13.7 billion

  Amazon to buy Whole Foods for $13.7 billion The online retailer is stepping into the physical retail world in a big, big way.The online retailer, which has spent the last few years toying around with experimental physical stores, said it has agreed to acquire Whole Foods Market for $13.7 billion, or $42 a share. The companies expect the deal to close in the second half of the year.

However, Wal-Mart's shares fell about 7 per cent to .65 in morning trading after Amazon unveiled a .7 billion deal to buy upmarket grocer Whole Foods Market Inc. However, analysts said other retailers such as Kroger would be hit harder by Amazon ' s latest bet.

USA -STOCKS/ (UPDATE 3): US STOCKS-Wall St falls as Amazon - Whole Foods deal crushes retailers . Amazon shares were up 3.2 percent at 5.18, while Whole Foods surged 27 percent to .95.

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Amazon's deal for supermarket chain Whole Foods has sent US shares in grocery stores, big retailers and food makers and distributors plunging.

It is rare for a single deal to have a big effect on the broader stock market but Amazon's agreement to buy Whole Foods Market did.

Investors wondered if Amazon will do to grocery stores and supermarkets what it has done to sellers of goods like clothing and office supplies - force them to make big changes or be supplanted.

Neil Saunders, managing director of the research firm Global Data Retail, said Amazon is likely to push supermarkets and grocery stores to slash prices, which will affect the companies that make and distribute those products.

Amazon to buy Whole Foods for $13.7 billion

  Amazon to buy Whole Foods for $13.7 billion The online retailer is stepping into the physical retail world in a big, big way.The online retailer, which has spent the last few years toying around with experimental physical stores, said it has agreed to acquire Whole Foods Market for $13.7 billion, or $42 a share. The companies expect the deal to close in the second half of the year.

(Reuters) - U . S . stocks fell on Friday as Wal-Mart and other retailers were slammed by Amazon .com' s biggest foray into the brick-and-mortar retail sector with its .7 billion deal to buy upscale grocer Whole Foods . Amazon shares were up 3.2 percent at 5.18

Amazon ' s deal for supermarket chain Whole Foods has sent US shares in grocery stores, big retailers and food makers and distributors plunging. It is rare for a single deal to have a big effect on the broader stock market but Amazon ' s agreement to buy Whole Foods Market did.

"As Amazon enters the grocery market proper, it will put a lot more pressure on existing grocers," he said. "Those grocers will respond by cutting prices and that will cut profits for the distributors."

Elsewhere, energy companies rose as oil futures bounced back from their lowest price this year and utilities and industrial and basic materials ground out modest gains.

Thanks to a late gain, the Standard & Poor's 500 index inched up 0.69 points to 2,433.15.

The Dow Jones industrial average added 24.38 points, or 0.1%, to a record high of 21,384.28.

The Nasdaq composite fell 13.74 points, or 0.2%, to 6,151.76. The Russell 2000 index of smaller company stocks shed 3.36 points, or 0.2%, to 1,406.73.

Online juggernaut Amazon announced it was acquiring Whole Foods in an all-cash deal worth 13.7 billion US dollars (£10.7 billion).

Amazon to buy Whole Foods for $13.7 billion

  Amazon to buy Whole Foods for $13.7 billion The online retailer is stepping into the physical retail world in a big, big way.The online retailer, which has spent the last few years toying around with experimental physical stores, said it has agreed to acquire Whole Foods Market for $13.7 billion, or $42 a share. The companies expect the deal to close in the second half of the year.

Amazon ' s deal to buy Whole Foods hits shares in US retailers . Amazon , the world’s most powerful online retailer , has taken a giant stride into traditional retailing , spending .7bn (£10.7bn) to take …

Online retail giant Amazon is making a bold expansion into physical stores with a .7 billion deal to buy Whole Foods And because customers can buy foods and bulk items like toilet paper from a single retailer , discount retailers such as Costco, Target and Walmart should feel threatened, too.

Many investors had expected Amazon to get into the grocery business. It already runs AmazonFresh, a grocery delivery service for members of its Prime service, and it recently opened a few grocery stores.

Investors dumped retailers, drug stores, and even discount chains. Many of them have started trying to sell more groceries in the last few years to try to capitalise on shoppers' desire for fresher, more natural food.

Amazon is a unique threat to many retailers because it does not mind losing money for long stretches. The company might be able to sell cheap groceries as it makes its money from its cloud computing business and its gigantic online marketplace.

"Is the future of grocery store shopping going to be a point and click experience, or is it going to be going to a grocery store?" said Dan Morgan, senior portfolio manager at Synovus Trust.

Amazon Robots Poised to Revamp How Whole Foods Runs Warehouses .
<p>The retailer could bring its distribution technology to the grocery chain</p>"We will be joining a company that’s visionary," Mackey said, according to a transcript of the meeting. "I think we’re gonna get a lot of those innovations in our stores. I think we’re gonna see a lot of technology. I think you’re gonna see Whole Foods Market evolve in leaps and bounds.

Source: http://uk.pressfrom.com/news/money/-173290-amazons-deal-to-buy-whole-foods-hits-shares-in-us-retailers/

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