Whole Foods Market’s stock prices rose 28 percent Friday following news that the online distributing giant Amazon was buying the grocery story for an estimated $13.7 billion. The acquisition is unlikely to lower consumer prices but will offer more opportunities for the expanding e-commerce business for fresh food.
“The brand is a good compliment to Amazon and would allow them to more aggressively target fresh food delivery to the at-home market,” Darren Tristano, chief insights officer at Technomic, told CNBC Friday.
Amazon has dominated the industry of deliveries of online purchases. A report from Citi Research suggested that Wal-Mart was “best positioned” to take on Amazon in the growing industry, according to a report in March by CNBC. That same report suggested that Whole Foods was lagging at the bottom of the list for the online shopping.