Amazon shakes up the grocery business with its $13.7-billion deal to buy Whole Foods – Los Angeles Times

Amazon revolutionized the sale of books, electronics and other products. Now the online shopping giant is threatening to transform how people buy their food.

Amazon.com Inc. dropped a bombshell Friday on the U.S. grocery industry by agreeing to buy Whole Foods Market Inc. for $13.7 billion, including net debt. The 465-store chain, which helped pioneer the large-scale selling of natural and organic groceries, often at a premium price, might seem like a niche player in the $611-billion U.S. grocery world.

But the potential ripple effects of Amazon’s largest purchase ever immediately rattled the industry, sending stocks of supermarket companies tumbling. That’s because Seattle-based Amazon already has aggressively used lower prices, technology and a vast network of distribution centers to transform other retail sectors.

Amazon shakes up the grocery business with its $13.7-billion deal to buy Whole Foods – Los Angeles Times

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