Amazon buying Whole Foods, making strong move into groceries

"Amazon is really is trying to get into the grocery market, and they're not only looking to do that online, but they're looking to do that in the traditional retail brick-and-mortar market", Hurley said in an interview.

Amazon, founded by Palmetto High-grad Jeff Bezos, meanwhile, has been expanding its reach in goods, services, entertainment - and groceries. Whole Foods shares were trading just above that level on Friday, as investors saw negligible regulatory risk to the deal closing.

In May, under pressure from Jana Partners, Whole Foods replaced five board members and its chief financial officer.

Projected cost of Whole Foods purchase by Amazon.

Empire: The parent company of several grocery store chains offers online shopping with either delivery, in-store pickup or both at several IGA locations.

By joining forces with Amazon, Whole Foods gains access to an entirely new distribution channel - which should be good news for anyone hoping to shop for organic kale online.

The acquisition marks an enormous step for Amazon, moving the company from being a predominantly web-based retailer to one that operates physical stores too.

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Amazon also has been testing automation technology at a Seattle convenience store that's now open only to Amazon employees.

"This gets Amazon straight up the curve with a credible, albeit upmarket, range", it added. "It's probably like the ideal match right", Whitney Winchester said. In fact, Whole Foods sells absolutely natural foods. Whole Foods Market has 30 locations across 42 states of USA.

Companies in the food business, he adds, are also under attack from another recent entry into the US grocery pace, German grocer Lidl. For customers, this could mean better prices and delivery options.

"Dominant players like Wal-Mart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks", said Charlie O'Shea, lead retail analyst at Moody's Investors Service. "This deal gives them credibility with consumers and a major foothold in that space".

It's not yet clear how its drone delivery program or Prime one-day delivery could change Whole Foods. As Digital Journal wrote about Slack, "the purchase would be hugely significant for Amazon, a company seeking to grow beyond its online retailer roots".

Mackey will stay as CEO, and the headquarters will stay in Austin, Texas.

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