Online retail giant Amazon made a major move into the brick and mortar space this morning, announcing plans to buy Whole Foods Market in a deal valued at $13.7 billion.
The Washington Post reports the organic grocer would continue to operate under its existing brand. The deal is expected to close in the second half of 2017, pending shareholder and regulatory approvals.
In Whole Foods, Amazon is acquiring a company that’s recently come under pressure from investors for its lagging performance. Whole Foods, whose fleet of stores now numbers more than 430 locations, has found it difficult to attract more mainstream consumers as Wal-Mart and other large chains have stepped up their sales of natural and organic products.
This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” Mackey says in a statement.
The deal is expected to close in the second half of 2017, pending shareholder and regulatory approvals.
