This summer, Whole Foods encountered a new opponent, Target Corp. During the discussion over leasing a prominent retail space in a leading mall in San Francisco. As Target Corp., the largest tenant in that mall, has a say over the alteration to the property, it pulled backed at sharing the mall space with Whole Foods because it did not want to involve into any competition with the new owner of the grocery chain, i.e., Amazon.com Inc. The initial attempts to persuade Target Corp. has been unsuccessful, and now Whole Foods may have to concede several Amazon initiatives, such as, lockers, from where consumers can pick up the goods they have ordered online. The talks regarding this are ongoing, told a person close to the company.
An examination of real estate agreements and the discussions with twenty retail lawyers, landlords, and brokers by Reuters demonstrates that the cords attached to operations in malls, such as City Center, offer an emergent and a little scrutinized challenge to the quest of Amazon to re-build the business of Whole Foods. Across the U.S., large retailers, such as Bed Bath & Beyond Inc., Target, and Best Buy Co. Inc. own legal rights in a number of lease agreements that permit them to limit where Amazon can open new Whole Foods stores and do with the nearby ones. The documents, examined by Reuters, indicate bans on Amazon delivery operations and lockers near a Target store in Florida and Illinois. Lockers for collecting online orders has emerged as a way for Amazon to increase sales through the grocery chain.
For the procurement of Whole Foods, Amazon.com is looking to fund US$13.7 bn through the debt market. For the ambitious plan of Jeff Bezos, the Amazon CEO, to conquest supermarket business, the acquisition of Whole Foods is important. The world’s biggest online retailer is trading its unsecured bonds worth US$16 bn in as many as seven parts. The largest part of the offering, which is a 40-year security, is expected to gain 1.45 percentage points above Treasuries in a sign of market interest; however less than initial talk of 1.6 to 1.65 percentage points.
For Amazon, this sales marks the first bond-market venture since 2014 and is projected to support the procurement of the organic-food chain, as said in the company’s statement. The alliance, when announced in June 2017, rattled the grocery world. It is anticipated to lead to a reduced price at Whole Foods, the iconic yet grappling high-end grocery store, which is trying to lure a healthy number of low- and middle-income customers. Market experts expect the deal to intensify a price war in an industry, which is affected by persistent deflation and razor-thin margins.
The e-commerce giant is targeting the market with massive bond deals from AT&T, worth US$22.5 bn, and British American Tobacco Plc, worth US$17.25 bn. The Whole Foods deal is looking good as this year’s fourth largest one after a US$17 bn offering from Microsoft. This deal has come at a time when tech enterprises have surfaced as active debt issuers, with Tesla’s debut offer on Aug. 11 and Apple’s first Canadian-dollar debt sale, announced on Tuesday, Aug 15, 2017.
From the first time, the shares of Amazon has risen above $1000 per share on Tuesday, during which Alphabet- Google parent company has reached around $997 per share. The share price of Alphabet is expected to cross $1000 cost per share very soon. As a result, Amazon and Alphabet have been on a rip and rising around 39% and 23% respectively from the start of 2017. This is projected to create promising opportunities and high profits for companies and investors in the near future.
High Stock Price Not Sole Factor to Determine Company Value
It is considered as a moment of pride to have a high-flying stock price not only for a publicly traded company but also for its investors. However, the cost of a single unit of stock actually matters very little. This is due to the cost of each share completely depends not only on the company value, but also on the number of shares that have been made available for investors. For instance, if Amazon and Apple, which are among the most popular companies, are expected to be compared, then Amazon will surely appear to be more valuable as the share price is quite higher. However, a company’s share price is not the only factor which determines the value as it depends on the number of outstanding shares.
High Price of Stock May Result in Split of Shares
As per the previous records, when the stock price of a company reaches too high, then the firm have split their stock in order to make it easier for the investors to make a purchase. This split is actually same in terms of value for the pocket, the only difference is the investors now have high number of shares. Thus, high units of stock are expected to result in higher costs for the investors in the near future.
The long-forgotten landline telephone is getting back on its feet, thanks to the recent launch of Echo Show, Amazon’s newest landline device that comes with a touchscreen and a camera. The smartphone is a device that most people cannot do without, while most drawing rooms have shoved away their landline phones to dusty corners. Amazon has therefore strategically addressed the need to reintroduce landline telephones in the global market.
Echo Show Uses Voice as Primary user Interface
Featuring Amazon’s Alexa voice assistant and two powerful speakers, the new device’s display is quite similar to the original Amazon Echo’s. More like an information display than a built-in Android tablet, the Amazon Echo can stream your favorite songs. Although you can use the touchscreen display to start, stop, or pause the music, your voice will be used as the key user interface.
Elderly Population to Find Echo Show More User-friendly than Smartphones
An entirely new feature has been added to the device — video calling. With Apple bringing back video calls in vogue via FaceTime, Amazon is also set upon rejuvenating the trend. Since people rarely prefer cold calling these days and turn instead to texting, Whatsapping, and Snapping frequently, Amazon has been trying to make phone calls less intimidating. When you call a person and he/she is not at home, you would not be interrupting anything as the person will not receive a notification.
The elderly population will find Echo Show more user-friendly than a common smartphone. It will bring family members together, thus gaining increasing popularity. Also, by virtue of Echo Dot, Amazon believes you require an Echo not just in every single home, but in every single room.