Amazon announced this morning that it agreed to buy organic grocery-chain Whole Foods for 13.4 billion dollars, according to The New York Times. The publication noted that Amazon likely sought out this purchase to step into the grocery business while also fighting Wal-Mart for customers.
Many consumers don't associate Amazon with physical retail locations. However, the company unveiled Amazon Books - a brick-and-mortar location - in 2015, and has expanded to five locations. In addition, the tech company has experimented with in-person AmazonFresh stores for Prime members, the Verge noted.
This deal is also good news for Whole Foods. Last month, several activist investors showed distress over the stock price and pushed for a change. That led to the replacement of several board members in an attempt to reinvigorate the company.
Amazon isn't the only company looking for a bigger piece of the U.S. grocery market. Other international grocery stores, such as Aldi, have announced plans to increase the number of locations in the U.S. Much like U.S.-based Trader Joe's, Aldi focuses on delivering products for lower prices by offering in-house branding - giving it more control over its supply chain when working with producers.