X
<

Amazon in 2Q17: Bookstores, Logistics, and Whole Foods

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Part 19
Amazon in 2Q17: Bookstores, Logistics, and Whole Foods PART 19 OF 20

Who Wants to Stop Amazon from Swallowing Whole Foods?

Fear of job losses

As rival bids are not coming up to challenge Amazon’s (AMZN) $13.7 billion buyout offer for Whole Foods (WFM), a regulatory review could pose a high hurdle for the deal. An industry workers union and some lawmakers in Washington, D.C., have pushed for thorough scrutiny of the Amazon–Whole Foods deal in response to a variety of concerns.

In a letter to the FTC (Federal Trade Commission), the United Food and Commercial Workers International Union (or UFCW) claimed that the Amazon–Whole Foods deal could lead to a loss of retail jobs and unfavorable food prices for consumers. UFCW represents more than 1.0 million retail workers.

Who Wants to Stop Amazon from Swallowing Whole Foods?

Interested in AMZN? Don't miss the next report.

Receive e-mail alerts for new research on AMZN

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Concern over food accessibility

A group of Congressional Democrats also wrote to the FTC, asking the agency to conduct a thorough review of Amazon’s proposal to acquire Whole Foods. The lawmakers cited concerns regarding accessibility to affordable healthy food once the deal closes.

While neither the UFCW nor the lawmakers have asked for outright rejection of the Amazon–Whole Foods deal, the issues they have raised could result in regulatory restrictions for Amazon even if it succeeds with the acquisition.

Retail job losses

Amazon has been criticized for contributing to widespread retail job losses, largely because of its automation of retail processes. Traditional retailers such as Walmart (WMT), Target (TGT), Sears (SHLD), Macy’s (M), and Finish Line (FINL) have been closing stores as they continue to lose market share to more efficient Internet rivals like Amazon and eBay (EBAY).

X

Please select a profession that best describes you: