Amazon announced today that it plans to acquire Whole Foods Market for $42 a share, in a deal worth $13.7 billion. If approved, the transaction would further immerse the e-tailer in the $611.9 billion supermarket and grocery store industry, where Whole Foods holds a 2.7 percent market share.
John Mackey will retain his position as Whole Foods CEO; the chain will remain headquartered in Austin, Texas and continue to operate under the Whole Foods brand.
According to IBISWorld Industry Analyst Madeline Hurley, “Although industry revenue is only set to rise at an annualized rate of 0.8 percent over the five years to 2022, the transaction will allow the online retail giant to boost not only its grocery sales, but expand its brick-and-mortar presence.”
In 2015, Amazon opened a physical bookstore in Seattle and now operates a total of eight locations nationwide. Over the next five years as the retail sector becomes even more competitive, retail powerhouses such as Amazon and Walmart are expected to invest in both online and physical stores in order to maximize their market share, Hurley said.
Whole Foods’ presence in the area includes stores in Danbury, Darien, Fairfield, Greenwich and Westport in Fairfield County and in Port Chester, White Plains and Yonkers in Westchester County.