It’s the repeated question of whether brick-and-mortar retail is dead, and according to the world’s largest e-commerce company – credited as the major disruptor to brick-and-mortar retail industry – the answer depends on what sector you’re in.
Amazon announced Friday morning that it would be buying organic grocer Whole Foods. The $13.7-billion deal is the company’s biggest acquisition in its 23-year history.
Amazon is paying $42 a share for Whole Foods, which represents about a 27 per cent premium.
The e-commerce giant is already a player in the grocery space with Amazon Fresh but is limited in developing major traction, as their model fits more with densely populated metropolitan cities, which makes sense with an e-commerce grocery business.
Whole Foods gives them an already established footprint and as announced, plans are for Whole Foods to continue to operate under its brand as current CEO John Mackey will remain in place.
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