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.
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