July 27, 2017

Markets Right Now: Grocer stocks plunge on Whole Foods deal

17 June 2017, 07:20 | Cesar Cruz

Amazon will be able to use automation and data analysis to draw more customers to stores while helping Whole Foods cut costs - and perhaps prices - and better tailor its offerings to customers.

Number of people who work for Amazon in the Lehigh Valley: More than 2,000 people. She feared the merger would simply create another, huge company with too much power over the American consumer. They do services of various sorts, but it is unsettling, isn't it, to think of one huge company. Whole Foods will continue to operate under its own brand, with the acquisition expected to close sometime in the second half of this year. Target Corp.'s stock fell to $50.30, down more than 9 percent. "We do have an aging population".

Groceries are already a fiercely competitive business, with low-priced rivals like Aldi putting pressure on traditional supermarket chains and another discounter, Lidl, opening its first USA stores just this week.

"I think that this takes all of the pressure off Whole Foods and gives Whole Foods the opportunity to revitalize that business and, of course, it stems the criticism from all of these activist investors", said Neil Saunders, managing director of GlobalData Retail in NY.

However, many large grocery chains took a big hit on the news of this deal.

"Wal-Mart has prepared for this day", said Michelle Grant, head of retailing at Euromonitor International.

Now, it's unlikely that small businesses will be involved in many deals of this magnitude.

Many Cuban exiles embrace Trump policy but want more
Some in the business sector say Trump's rollbacks will hurt American businesses. "This is the simple truth of the Castro regime". Like many diplomats, he spoke on condition of anonymity to talk about the Trump administration.

"Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades-they're doing an unbelievable job and we want that to continue", Amazon Chief Executive Officer Jeff Bezos said in a press release.

Mickey Chadha, an analyst with Moody's Investor Service, says Amazon has been trying to break into the grocery delivery business and that buying Whole Foods gives it access to a high-income group of customers.

Whole Foods operates supermarkets in Montclair, West Orange, Paramus, Newark, Clark, Morristown, Madison, and other locations in the Garden State. The grocery store operator was also under pressure from activist investor Jana Partners.

Amazon, on the other hand, has been expanding beyond online retail into physical stores.

So what's leading to all this pharmaceutical heartburn over a grocery-retail deal? Online juggernaut Amazon announced Friday, June 16, 2017, that it is buying Whole Foods in a deal valued at about $13.7 billion, including debt.

Amazon is among the biggest name when it comes to the world of e-tail.

"We need to get better, and we're doing that", Whole Foods Chief Executive John Mackey told Texas Monthly in an interview this month.

Other News

Trending Now

Murray wins in straight sets
With some exquisite returning and acutely angled groundstrokes, Murray raced through the final set and into the fourth round. The left-hander blasted 31 winners as he took just 93 minutes to dismiss Uruguayan 22nd seed Pablo Cuevas 6-2 6-2 6-3.

Amazon buying Whole Foods in bold move into brick and mortar
Cohen said prices will probably come down in light of the "competitive battleground" the grocery industry has become. He added that these are likely the higher-income households who tend to buy more expensive brands and cuts of meat.

US housing starts fall to eight-month low
The pace of so-called housing starts declined by 5.5% to an annual rate of 1.09 million, marking the lowest level in eight months. Building permits last month fell 4.9 percent to a pace of 1.17 million units, the lowest level since April 2016.

A third of the world is obese or overweight, study finds
It finds that almost 40% of deaths related to carrying excess weight were among people who were overweight but not obese . The five nations and territories with the highest rates of obesity are American Samoa, Tonga, Samoa, Kuwait and Kiribati.

Golden State Warriors Get The Best Of The NBA's First Finals Trilogy
Responding to a question about Durant's first win in the NBA Finals , James said , "Well I'm not happy he won his first". But as we all know, the Spurs just don't give a hoot about ratings or, for that matter, media attention of any kind.

Trump investigated for obstruction of justice
Earlier this week, news reports indicated that Trump was thinking about firing Mueller but was dissuaded by staff. Mr Trump's lawyer denounced the development and accused the Federal Bureau of Investigation of leaking material.

Trump Wants Expanded Travel Ban Following London Terrorist Attack
WASHINGTON-The president of the United States is now attacking his own policy. "Sad", Conway tweeted in response to Trump. They also went against what Press Secretary Sean Spicer said in January, when he said: "It's not a Muslim ban".

Trump restores some Cuba restrictions
Both of Connecticut's Democratic senators expressed concern with the announcement from the president on U.S. -Cuba relations. Cheered by Cuba hardliners in both parties, Trump's new policy is broadly opposed by USA businesses eager to invest in Cuba.

Warriors' Draymond Green, amid championship parade, mocks LeBron and the Cavaliers
LeBron James then took to Instagram and hilariously hit Draymond with the " that's what she said " call. At the end of the day, it was a great series.

Coli bacteria found in drinking water at US Open
In fact, Fowler was one of only two golfers in the top 10 in this week's world rankings to play under par. Day will go off early in round two, rejoining Justin Rose and Rory McIlroy in the tenth group of the day.