Your world just got a little smaller. Online retail giant Amazon announced this morning that it is buying high-end grocery store chain (some of which include coffee shops and record stores) Whole Foods in a deal valued at $13.7 billion. Whole Foods CEO John Mackey will stay in his position, and the deal is set to close later this year. From CNBC:

"This partnership presents an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers," Mackey said in a statement.

Whole Foods has been under pressure from Jana Partners hedge fund and money management firm Neuberger Berman, which have called on Whole Foods to sell itself. The investors have criticized Whole Foods for its poor performance, and have suggested the chain could be merged with another grocer.

Amazon has been pushing to expand its online grocery business.

Online has been the next frontier for the grocery business. However, very few people purchase their groceries online even as more shoppers switch to buying other goods online.

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