Amazon, the world-famous e-commerce website currently owns a long list of companies. Other than that, the company itself has opened many sub-brands. Today, the e-commerce site owns over 40 subsidiaries. Interestingly, all the subsidiaries are running successfully in the market. There is no huge loss faced by those Amazon-owned companies. Let us know ‘Does Amazon Own Whole Foods?’.
Under Amazon’s owned brands, the company has wholly-owned Whole Foods Market. The owner of Amazon controls major retail and tech companies in the world market. Amazon purchased the grocery store company back in 2017. Today, all Whole Foods Market stores are controlled and run by Amazon.
Amazon has bought all the rights and memberships of Whole Foods Market. This made Amazon expand its line of products through other brands. Amazon is famous for selling online electronics, clothes, shoes, jewelry, and many more products. But, today, the company is also selling grocery-related items to various customers.
Whole Foods Market
Very few people in the country know of Whole Foods Market. Inc. Whole Foods Market is an American-based supermarket company. This supermarket company was established and founded way back in 1980. Initially, the supermarket company was doing well in business but, that was not for long.
The company was known for selling products that were free from hydrogenated fats, and artificial ingredients. Interestingly, Whole Foods Market is also USDA certified organic grocery store. The company sold products that were 100% organic. The supermarket company was highly known for its organic selectors.
As of March 2019, Whole Foods Market had already opened more than 400 stores nationally. Today, all the stores are owned and controlled by Amazon. The supermarket chain also opened up seven stores in the United Kingdom.
Whole Foods Market was highly active in participating in various environment-friendly programs. The supermarket company was the first to commit to eliminating disposable plastic grocery bags. They opened up this plan to save the environment. The company also opened up People for the Ethical Treatment of Animals. These were loved by customers all over the country but, not for a long time.
Amazon Acquired Whole Foods Market
In June 2017, Amazon and Whole Foods Market announced that they have entered into a merger agreement. Amazon stated that they will acquire Whole Foods Market’s share for $42. The shares will be bought in the all-cash transactions only. Now, after it was calculated the company valued $13.7 billion including the debt incurred by Whole Foods Market.
Amazon stated that after this acquisition, Whole Foods will continue to operate the same way. All the employees working will continue with their work and there will be no change in CEO. Additionally, the headquarters of Whole Foods Market will remain in its previous location. Jeff Bezos ensured that there would be no change in the business procedure other than acquisition.
The transaction of Whole Foods Market was approved by the shareholders of its company. After all the officials were done the transaction was expected to close at the end of 2017. The per-share rate offered by Amazon attracted the shareholders of Whole Foods Market. This is because the supermarket company was already in huge debt in the world market.
Today, around 92% of the stake is taken and owned by Amazon. Though, Whole Foods Market is operated separately but they are wholly owned by Amazon.
Benefit for Amazon
As we have mentioned above Amazon was not into the grocery business. The e-commerce website was famous for selling products online except for groceries. This was a new expansion for Amazon or acquaintance. Before this transaction, Amazon did not own any grocery companies in the world market.
After the deal of this acquaintance, Amazon faced many benefits from Whole Foods Market’s stores. The stores were already in the market so it was not required for Amazon to build one. This helped Amazon to supply products very easily under their brand name to customers.
Other benefits from this deal are the following:-
- It gave full-fledged entry to Amazon in the grocery store business and earned a huge profit.
- It gave Amazon an infrastructural boost.
- The profit margin of Amazon increased to grocery items. This is because Amazon found out that many people bought groceries daily.
- The brand name of Amazon was not available across North America with its warehouses, delivery routes, and many more.
- Any family with a good income spent $500 per month on whole foods. Amazon took this as a golden opportunity to decrease the amount with a great range of products.
These were some benefits that were incurred by Amazon after they acquired Whole Foods Market. Today, the same benefits are used by the parent company of Whole Foods Market. Additionally, the competition for Amazon has increased due to more grocery stores in the country. Still, the company keeps up with the latest trend and never decreases its profit margin.
Conclusion
After this merge both Amazon and Whole Foods Market were beneficial. Amazon might have owned Whole Foods Market but, the branding was done through Whole Foods Market only. Many customers and consumers visiting the store thought that the products were from Whole Foods Market only. It also increased the brand image of Whole Foods Market.
Frequently Asked Questions
- Is Whole Foods Market a supermarket grocery store?
Answer- Yes, Whole Foods Market is America’s largest chain of supermarkets that sells 100% organic products.
- What is so special about Whole Foods Market supermarket?
Answer- The supermarket chain is highly appreciated for selling 100% organic products. The company only sells natural products to customers.
- Does the United Kingdom have Whole Foods Market stores?
Answer- Yes, the United Kingdom does have stores. The country has over 500 Whole Foods Market stores operating daily.
