June 19, 2017 | In the Media

Why life may never be the same after Amazon's big deal for Whole Foods

Why life may never be the same after Amazon's big deal for Whole Foods
While the ink is still drying on Amazon.com Inc.'s blockbuster $13.7 billion agreement to buy Whole Foods Market Inc., many are already speculating what the combined company might look like should the deal be completed. 

The proposed deal would make a combined Amazon and Whole Foods the nation's fifth-largest grocery retailer, behind Wal-Mart Stores Inc., Kroger Co., Costco Wholesale Corp. and Albertsons/Safeway, according to Cowen and Co. LLC analysts. While the tie-up differs from Amazon's typical acquisition strategy of build first, buy second, Cowen analysts said the acquisition makes sense, given that the grocery market is valued at approximately $1.3 trillion in the U.S. 

Above all, it shows that Amazon isn't yet ready to abandon the brick-and-mortar model and believes that physical stores could be the best medium to bring new retail technologies straight to the consumer, said Nancy Tseng, a director in West Monroe Partners LLC's mergers and acquisitions practice. 

"This is a key turning point in how we shop, how we buy, how we're influenced and really a reflection of how strong of a role tech and internet companies play in our daily lives," Tseng said. 

To read the entire article, please visit TheStreet.com's web site. 

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