Acquisition Means Lower Prices
The grocery store known for it’s sky-high prices is finally coming back down to earth. Whole Foods, often referred to as Whole Paycheque in jest, has been enjoying a welcome bump in traffic thanks to an American commerce giant. Ever since Amazon spent US$13.7 billion dollars to acquire Whole Foods, consumers are reaping the benefits. With prices dropping up to 43%, consumers are finding value in products that they had previously purchased elsewhere. The addition of Amazon.ca’s Prime service that allows customers to order Whole Foods’ branded products online and have them delivered within a day adds to the appeal.
Increased Pressure For Suppliers
Following the acquisition in August 2017, shares of other American grocery retailers dropped. Purveyors of packaged food also saw their shares lose value once news became public that Whole Foods products would be made available online. Suppliers are feeling the pinch of the new prices as they are being asked to pay more to have their products featured in Whole Foods’ brick-and-mortar locations and offer competitive discounts to stay on board.
Getting Mergers And Acquisitions Right
Mergers and acquisitions can prove to be challenging for companies on both sides of the transaction. From understanding the benefits and drawbacks to exploring long-term effects, having the right knowledge matters. An experienced lawyer can provide invaluable guidance and legal support to help clients get the answers they need in order to make an informed decision.