Analyst: Whole Foods won’t be Amazon’s only big deal


Many people were surprised when online retail giant Amazon.com on Friday announced plans for a $13.7 billion acquisition of Austin-based Whole Foods Market.

Ryan Deiss wasn’t one of them.

The founder and CEO of Austin-based DigitalMarketer.com said he’d been expecting Amazon to make a brick-and-mortar purchase for at least a year – and Whole Foods was the perfect fit, he said.

TIMELINE: Whole Foods through the years

The move was necessary, Deiss said, for Amazon to continue its growth.

“The vast majority of retail dollars are still spent in the real world,” Deiss said. “Everyone assumes it has all gone online and that’s just not the case.”

Amazon, Deiss said, has pretty much maxed out its reach online. Going the brick-and-mortar route will give it access to new customers – and lots of them.

RELATED: Whole Foods-Amazon deal has positives, negatives for Austin, experts say

“Amazon has been able to dominate the e-commerce world,” he said. “They’re running up against the limitations of the number of humans online. To really take it to the next level, Amazon knows this is what they’ve got to do.”

The $42 per share, all-cash deal, which requires approval from shareholders and regulators, gives Amazon 465 Whole Foods stores in the U.S., Canada and the United Kingdom – including six in Central Texas. Deiss said he believes the acquisition is just the beginning for Amazon, which has the technology and logistical know-how to help streamline operations – and cut costs – at just about any company it might acquire.

RELATED: Shoppers offer mixed reactions to Whole Foods purchase

“I have a feeling they had their eye on Whole Foods for years, and that they already know who else they want,” Deiss said. “They think so far in advance. This is the start of an overarching strategy. More announcements, I bet, are in the works.”



Reader Comments ...


Next Up in Business

Up the Ladder

Finance Banker’s Toolbox has named Max Thoene chief operating officer. Government The Texas County & District Retirement System has named Casey Wolf chief investment officer. Health care The Austin Healthcare Council has named Mini Kahlon board chair and Charles Barnett board vice chair. Technology SecureLink has named Chip Pate chief financial...
Top Local Business Stories of the Week
Top Local Business Stories of the Week

3M DEAL 3M to sell Austin unit to Corning in its latest local downsizing: Industrial and consumer products company 3M continues to reduce its Austin footprint, announcing plans to shed a unit based here that makes bandwidth and optical fiber devices for the telecommunications sector — six months after it reached a separate deal to sell its main...
Pair of retail developments planned for Georgetown
Pair of retail developments planned for Georgetown

Two large retail developments, one including an Italian-themed village, are headed to Georgetown at Interstate 35 and Texas 29. Wolf Lakes Village is a proposed 164-acre retail/residential community with arched bridges, a plaza, three lakes and a wedding chapel planned for the northwest corner of the highways’ intersection. It also will feature...
11 rookie mistakes to avoid during the first year of your new job
11 rookie mistakes to avoid during the first year of your new job

Whether you're in your first job straight out of college or are a seasoned professional starting with a different company, your first year can set the tone for success or failure.    Early mistakes can be difficult to overcome and can torpedo your career in the longer term. Each office has its own way of doing things, and it's part of your...
1 year in, Domain Northside development is a hit
1 year in, Domain Northside development is a hit

Bigger and better than anything Central Texans had seen before. That was the goal when Austin-based developer Endeavor Real Estate Group set out to plan Domain Northside, the third – and final – phase of the Domain mixed-use project in North Austin. PHOTOS: Domain Northside turns 1 One year after the first wave of businesses opened their...
More Stories