Mainers wary of Amazon/Whole Foods deal
- Author: Zachary Reyes Jun 20, 2017,
Jun 20, 2017, 18:13
He said: "We think the deal says that entry into food retail from the outside is just too hard, but the limitations of the store pick model mean its market share progress might still be subdued short-term". Amazon, which made a splash a year ago with a checkout-free grocery store, has denied reports that it plans to automate the jobs of Whole Foods cashiers.
Amazon announced on Friday that it will acquire Whole Foods for $13.7 billion, giving the online retail titan a large store network and a foothold in the $600 billion USA grocery industry, Business Insider reports.
"Even if they did compete. you'd have to look at the presence of (other grocery chains)", said Abbott, who argued that many Whole Foods stores are in close proximity to other grocery stores, which means antitrust enforcers might be satisfied there was adequate competition.
GrubHub Inc. shares gained around 5 percent on Monday after an analyst suggested that the online and mobile food-ordering service could be the next buyout target of Amazon after its acquisition of Whole Foods Market Inc. "It was truly love at first sight", Mackey added.
"We just fell in love", said Mackey. They're so authentic. They say what's on their mind. So why wouldn't Amazon buy a recognized brand if they really wanted to get into the grocery game?
Amazon's Jeff Wilke told Whole Foods employees about his own journey to healthy eating. This is not- this is not a Tinder relationship.
"Like an old traditional marriage, where there are all kinds of rules and chaperones, we can't consummate the marriage until we're officially hooked up", he said.
He said that there will be intermingling of Amazon and Whole Foods staff and admitted that there will be some, well, evolution in how things are run. The company has over 4,000 stores compared to around 400 for Amazon, and that's a big advantage if Walmart can move quickly and take advantage of the "last mile" and getting those products from the store to consumers' homes. I think ultimately, this is good for consumers. "I think we could have talked for 10 hours", Mr. Mackey said at the town hall. Whole Foods had been working to get better at data collection with the rollout of a loyalty program, and Amazon is expected to give those efforts a significant boost.
Barclays analyst Karen Short raised her Whole Foods price target to $48 from $38 and upgraded the stock to overweight from equal-weight, citing the possibility of counterbids. Mackey had slammed the hedge-fund investors in an interview with Texas Monthly, calling them "greedy bastards" who were only interested in making a quick buck on the sale of the company.
"Different corporation taking over can hurt, it can help, we'll see", says s Ishmael McIntosh.