Amazon’s US$14 billion acquisition of organic grocery chain Whole Foods Market will close on Monday, the companies announced on August 24.
Whole Foods Market, which will keeps its name, will immediately lower prices Monday on a portion of grocery items — including organic bananas, salmon, avocados, organic baby kale and baby lettuce, organic large brown eggs, and lean ground beef — when the merger goes through, the companies said in a news release.
Amazon plans to integrate Whole Foods products into its US$99-a-year Prime subscription service. Prime members will receive special savings and in-store benefits at Whole Foods stores, creating a de facto customer rewards program for Prime shoppers.
Amazon also plans to offer Whole Foods’ private label items online, through the company’s Fresh and Pantry operations and the Prime Now two-hour delivery service available to Prime subscribers.
The Seattle e-commerce company also plans to roll out its Amazon Lockers — where customers can pick up and return online orders — to select stores in Whole Foods’ 460-store portfolio.
Grocery stocks tanked in afternoon trading on news of the merger’s completion. Walmart shares were down more than 2% while shares in Sprouts Farmers Market and Natural Grocers each dipped about 4%. Kroger stock had sunk more than 7% as of Thursday afternoon.
Full Content: Yahoo
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