The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.
The grocery chain, known for its organic options, had been facing increased pressure from rivals, including European grocery chain Lidl, which is planning to enter the East Coast market, along with Aldi and Trader Joe’s.
Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.
Whole Foods will keep operating stores under its name and John Mackey will as CEO, with headquarters in Austin, Texas.
The company, founded in 1978, has struggled to differentiate itself as competitors also now offer a plethora of fresh and organic foods, and has said customers may be choosing “good enough” alternatives closer to home. In addition to other natural and organic grocers, it has cited pressure from restaurant chains, meal-delivery companies and traditional supermarkets such as Kroger.
The deal is expected to close in the second half of 2017.
WOW. I’m not quite sure about this…but then Bezos didn’t ask my opinion…hmmmmmmmm.
Totally didn’t see this coming. I’d have thought that Bezos would’ve made an offer to TRADER JOE’S. “Whole Paycheck” is popular here in NYC (and I would assume the other major cities) but outside of those places, I don’t see how the profit margin goes up nationwide.
Unless Amazon’s online footprint takes the store’s sales to a whole new level.