Data & Analytics

In a blockbuster deal, online giant Amazon is acquiring Whole Foods Market in an all cash transaction valued at $13.7 billion, or $42 a share.    John Mackey, co-founder and CEO of Whole Foods, will remain CEO of the grocer after the deal closes. Stores will continue to operate under the Whole Foods banner, and the company's headquarters will remain in Austin, Texas.  

Eco-friendly home improvement retailer TreeHouse's new outpost in Dallas is billed as the nation's first energy-positive (meaning it will generate more energy than it uses) big-box store.   The 35,000-sq.-ft. space offers a curated selection of products, materials and technologies — some not available elsewhere—designed to promote healthy and sustainable spaces.  It also offers turn-key services and programs, including kitchen and bath design. solar energy kits, home insulation and "smart" home installation.

E-commerce has generated significant volumes of sales in the electronics and clothing industries, but has yet to gain traction in other retail sectors.  

The retail sector is used to change, but every so often an event occurs that shakes the industry to its core. Amazon's acquisition of Whole Foods is one of those.   On the surface, the purchase -- which comes with a $13.7 billion price tag -- is surprising. However, there is an inherent logic in the move which, in our view, brings benefits to both businesses.  

Despite the many sales that showrooming has afforded Amazon over the years, the retailer surely doesn't want to become a victim going forward.  

Chuck Grom, analyst, Gordon Haskett analyst:

Amazon may be looking to bolster its enterprise services offering with an innovative addition.   Corporate chatroom startup Slack Technologies has received inquiries of late about a potential takeover from technology companies, including Amazon. The company is valued at approximately $9 billion, according to Bloomberg.  

J. Crew is entering into a deal that it expects will put it one step closer to improving its business.   The fashion retailer has won the support of more than 50% of its term loan holders to trim its $2 billion debt load and end intellectual property litigation. This was according to sources familiar with the situation, according to Reuters.