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Monday , 21 August 2017
Breaking News

Amazon to buy Whole Foods for USD13.4 Billion

Amazon which is now the world’s largest retailer by a great distance surpassing the Wal-Mart in terms of valuation by more than 100% has announced its intentions to buy Whole Foods. The brick and mortar company which had a humble beginning in a garage has seen a tremendous growth in the past few years under the able leadership of its visionary founder Jeff Bezos.

Amazon was already in the news in India where it’s subsidiary Amazon India was believed to be in talks to buy Big Basket, a news which was neither confirmed nor denied by both the parties. The valuation is pegged at little upwards of USD 500 Million though Big Basket is seeking a USD 700 Million for the sell out.

With the purchase of upscale grocery chain, Amazon which had it’s major presence online will now have access to the physical markets too. While it’s competitor Wal-Mart has announced a USD 3.3 Billion for Jet.com last year and UD 310 Million for internet apparel retailer Bonobos, Amazon wanted its customers to visit the store physically to but fruits, vegetables and meat. The US retail market is valued at USD130 Billion. 

“Make no mistake, Walmart under no circumstances can lose the grocery wars to Amazon,” said Brittain Ladd, a strategy and supply chain consultant who formerly worked with Amazon on its grocery business. He also added that “If Walmart loses the grocery battle to Amazon, they have no chance of ever dethroning Amazon as the largest e-commerce player in the world.”

 

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