Amazon-Whole Foods merger gets green light from United States government

Amazon-Whole Foods merger gets green light from United States government

Amazon-Whole Foods merger gets green light from United States government

Online retail behemoth, Amazon, is set to close the deal on acquisition of Whole Foods on Monday.

The price cuts will make Whole Foods more competitive as it enters Lancaster County in 2018, the same year that Wegmans is due to open here, both determined to carve a slice out of the county's $1.44 billion grocery market.

There's also a plan in place for online shoppers that will make Amazon Prime the Whole Foods Market customer rewards program. "But with Amazon lowering Whole Foods' prices, you could get Whole Foods in towns where you don't traditionally see them", supermarket analyst David J. Livingston said.

Industry watchers think this is a good start for Amazon in the food business.

Previously you could only by them in a Whole Foods store.

"You have to be price relevant, and nobody wants to feel like they're being cheated", John Mackey, co-founder and chief executive of Whole Foods, said in a call with analysts in February. They can also shop online and pick up their orders at Whole Foods stores through the company's Amazon Lockers.

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In its press release about Amazon's plans to lower Whole Foods' prices, the company was sure to inform investors that these first price cuts are "just the beginning".

Wednesday's shareholder vote, held at Whole Foods headquarters in Austin, Texas, had been expected to pass.

Wilke said Amazon will "continuously lower [Whole Foods'] prices as we invent together". Whole Foods products will also be available on Amazon's website where customers can shop via its fast delivery services such as AmazonFresh, PrimeNow, and Prime Pantry.

"Prime customers are very suggestable and leadable, extremely loyal and spend a lot more at Amazon than others", Levin said.

To improve operating efficiencies and subsequently give Whole Foods more leeway for further price reductions, the two companies are turning to Amazon's merchandising and logistics expertise.

Whole Foods now represents less than 2% of the overall grocery market. In fiscal year 2016, the Company had sales of approximately $16 billion and has more than 460 stores in the United States, Canada, and the United Kingdom. We use words such as anticipates, believes, expects, future, intends, and similar expressions to identify forward-looking statements. Amazon assumes no obligation to update the information in this communication, except as otherwise required by law.

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