1. Amazon is buying Whole Foods for $13.7 billion.
The blockbuster deal, as my WSJ colleagues wrote
yesterday, transforms Amazon into “a major player in the bricks-and-mortar retail sector it has spent years upending.” They write (all emphasis mine):
The acquisition, Amazon’s largest by far, gives it a network of more than 460 stores that could serve as beachheads for in-store pickup and its distribution network. It would make Amazon an overnight heavyweight in the all-important grocery business, a major spending segment in which it has struggled to gain a foothold because consumers still largely prefer to shop for food in stores.
In a sense, the surprising deal is preordained by his mission to construct the everything store: A company that delivers everything to everyone, at the best possible price and within the shortest amount of time.
Grocery is an $800 billion market in the U.S., still largely untouched by the internet and resistant to change. Whole Foods itself has a well-established brand and high-income demographic that maps well to Amazon’s own customer base, and in particular its Amazon Prime subscription service, with an estimated 80 million members.
2. Walmart’s acquiring Bonobos for $310 million.
The purchase of the menswear site shows how the retailer’s pushing into fashion
4. The iPhone’s origin story.
Ten years after the device was unveiled, Motherboard’s Brian Merchant has a new book out called “The One Device.” Here’s an excerpt