Amazon-Whole Foods Deal to Heighten Industry Competition

Amazon-Whole Foods Deal to Heighten Industry Competition

The acquisition will further immerse Amazon in the $611.9-billion Supermarkets and Grocery Stores industry, where Whole Foods holds a 2.7% market share.

Los Angeles, CA, 2017-Jun-16 — /EPR Retail News/ —This morning, Amazon announced plans to acquire Whole Foods Market in a $13.7 billion deal. The acquisition will further immerse the e-tailer in the $611.9-billion Supermarkets and Grocery Stores industry, where Whole Foods holds a 2.7% market share.

According to IBISWorld Industry Analyst Madeline Hurley, “Although industry revenue is only set to rise at an annualized rate of 0.8% 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.”

This is not the first time Amazon has dabbled in brick-and-mortar retailing. In 2015 the company  opened a physical book store 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 like Amazon and Walmart are expected to invest in both online and physical stores in order to maximize their market share.

About IBISWorld Inc. Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. For more information, visit www.ibisworld.com or call 1-800-330-3772.

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For free access to the Supermarkets and Grocery Stores industry report or interviews with our retail sector analyst, please contact Kathryn White at kathryn.white@ibisworld.com

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