Amazon expands into new areas of retail with acquisition deal

Many of our readers in Louisiana probably saw the recent news that Amazon, a goliath of internet commerce, has reached a deal to acquire grocery chain Whole Foods Market for a whopping $13.7 billion. When this acquisition deal was announced, many economists and experts saw it as a bold push by Amazon into yet another sector of retail.

The reports indicate that Whole Foods Market has over 460 locations throughout much of North America, as well as some locations in the United Kingdom. There are even a few locations in Louisiana. This acquisition shows that Amazon is prepared to push into the realm of physical retail locations, and not just rest on its laurels in dominating online commerce. The reports indicate that all Whole Foods Market locations will continue to operate under this brand name, while the current chief executive would also remain in place. And the primary competitor that will likely take the most notice of this deal is one that almost every American is familiar with: Wal-Mart.

However, this acquisition deal is not without critics. Some believe that it will be difficult for Amazon to establish a firm presence in grocery retail, an area that is seeing quite a bit of upheaval throughout America as people begin to experiment with grocery delivery and online ordering.

Nonetheless, it is clear that the decision-makers at Amazon viewed the acquisition of Whole Foods Market as a potentially game-changing deal. Now that the deal has been struck, it is time to examine the details, and ensure that all business law and regulatory issues are met.

Source: Washington Post, "Amazon to buy Whole Foods Market in deal valued at $13.7 billion," Abha Bhattarai, June 16, 2017

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