In 2017, Amazon acquired Whole Foods Market for $13.7 billion. Amazon and Whole Foods announced the all-cash agreement on June 16, 2017, with Amazon offering $42 per share, including Whole Foods’ net debt in the headline valuation.
The deal closed on August 28, 2017, making Whole Foods a subsidiary of Amazon while allowing the grocery chain to retain its brand and chief executive, John Mackey. For Amazon, the acquisition supplied an immediate network of physical stores and a stronger position in groceries—an area where online delivery alone had not yet matched traditional supermarkets.
The purchase also connected Whole Foods shopping with Amazon’s technology and loyalty ecosystem. Amazon introduced discounts for Prime members, expanded grocery delivery in selected markets, and integrated some ordering and pickup services. The acquisition was notable because Amazon, best known for online retail, was investing heavily in brick-and-mortar commerce.
A common mix-up is confusing the buyer with Walmart, another major grocery and retail competitor. Costco and Alibaba were not the companies that acquired Whole Foods.