Amazon deal to buy Whole Foods could shake up Canadian grocery industry
TORONTO — Amazon’s purchase of Whole Foods gives the e-commerce giant a foothold in Canada’s grocery industry and could pressure supermarket chains to step up their game in an already competitive environment, experts say.
The retail behemoth announced Friday an agreement to buy Whole Foods Market in a deal that values the company, which specializes in natural and organic foods, at US$13.7 billion.
The move weighed on Canadian grocery retailers as shares of Loblaw (TSX:L), Empire (TSX:EMP.A), Metro (TSX:MRU) and George Weston (TSX:WN) all lost ground.
“It gives them a first step in Canada,” said Michael von Massow, an associate professor at the University of Guelph, adding Amazon has shown it’s committed to entering the food business.