The Amazon/Whole Foods Market Transaction: Implications & Impacts On REITs

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Case

Reference no. CCW180308

Subject category: Strategy and General Management

Authors: Michelle K Felman (Columbia Business School, Columbia University); Russell Platt (Columbia Business School, Columbia University)

Published by: Columbia CaseWorks, Columbia Business School

Originally published in: 2018

Version: March 27, 2025

Revision date: 4-Apr-2025

Length: 47 pages

Data source: Published sources

Topics: Real estate; Retail sales; Amazon; Whole Foods; Real estate investment; Acquisition; Strategy; Acquired

Share a link: https://casecent.re/p/154294

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Abstract

Friday, June 16, 2017, began with a jolt to the US commercial real estate market when Amazon announced its acquisition of Whole Foods for USD13.7 billion. Stock prices for Kroger, SuperValu, Publix, and discount stores like Costco and Target tumbled. Real estate equity experts jumped into action to analyze the deal. These experts considered what synergies the Amazon/Whole Foods Market combination would create and what impact the deal would have on consumer shopping habits, retail tenants, commercial real estate developers, and real estate investment trusts (REITs). How will this deal change the risk scenarios for all US retail investments? In this case, students are asked to consider the best course forward for real estate investors in the newly changed retail landscape.

Location:

USA

Industry:

Retail

Other setting(s):

2017