Editor's note: Amazon is the hottest topic in the industry right now, and with today's news, Amazon is poised to shake up the grocery industry. To read how Amazon is transforming the action sports landscape, see our recent story "Lessons Learned from the Amazon Wars."
In another sign of the rapidly changing retail landscape, Amazon announced this morning that it is buying premium grocery chain Whole Foods.
The online giant, which has been pushing into groceries with its Amazon Fresh service, will pay $13.7 billion in cash, or $42 per share.
Whole Foods’ stock priced closed at $33.06 Thursday.
Amazon continues to drive huge change in the retail industry, and this acquisition will likely have big repercussions on grocery competitors.
Whole Foods has been under pressure from activist shareholders unhappy with the company’s performance. Same-stores sales have been challenged as competitors have increased lower-priced, organic food selections and shoppers have shied away from Whole Foods' “whole paycheck” prices.
Company executives had said recently that Whole Foods would be closing some stores and lowering prices in a bid to boost its performance.
Whole Foods will continue to operate under the Whole Foods brand and its headquarters will remain in Austin, Texas.
CEO and Co-Founder John Mackey will remain with the company, according to a statement from Whole Foods.