Whole Foods CEO calls deal with Amazon 'whirlwind courtship'
- Author: Carolyn Briggs Jun 20, 2017,
Jun 20, 2017, 18:43
"Whole Foods/Amazon's venture into that will just make it even more exciting and better for consumers", said Meyer. Amazon "didn't put this out of reach for everybody else" in terms of price, he said.
Amazon shares opened at $1,017, a record according to Google Finance, although they later came down to around $1,000, up 1.28 percent from the close Friday, the day the $13.7 billion Whole Foods deal was announced.
At a time when central banks are starting to gird against an expected rise in inflation ahead, Bezos' move to acquire Whole Foods looks to be a significant counterweight.
Amazon and Whole Foods is a brilliant combination. He explained that he and a few senior executives flew up to Seattle to meet with Amazon counterparts. However, I feel that no buyer makes a serious run at Whole Foods, where, as much as they're anxious about what Amazon plus Whole Foods means, they're more anxious about the possibility that Whole Foods' margins continue to get squeezed and "figuring" out grocery delivery never really pans out. He may be about to exert a similar level of pressure on the economy and expectations for future price trends at the supermarket.
Again, it's too soon to say what exactly we can expect, but considering Amazon has been trying to get into the grocery game for a while now, it's likely that some big changes are in the works. "ORCRP016487-topic.html" class="local_link" >Wal-Mart Stores Inc.
Amazon will scoop up more than 400 Whole Foods stores across the country, instantly making them a major player in the grocery industry.
But he said he thought Amazon would be able to help Whole Foods more quickly realize the changes it has already been pursuing, such as a loyalty program and its cost-cutting efforts.
Whole Foods already has a separate store, called 365, which offers private-label goods and lower prices than its typical formats.
Ocado's share price has waned in recent years after it struggled to land an overseas deal for its software platform. The deal followed a scrape with activist investor Jana Partners, which had threatened to shake up Whole Foods' board and overhaul the chain.
Although Amazon's deep pockets were hard to match for any rival, "many will do anything to either make this acquisition more costly for Amazon or prevent the assets from landing in Amazon's lap", analyst Karen Short said in a research note sent to clients on 16 June. We're proud of our fresh food credentials, with 96 per cent of all our fruit and vegetables sourced from Australia'.
I know this from a transcript of a Friday town hall meeting in which Whole Foods CEO John Mackey gushed about the palpitations he felt on meeting with Amazon executives, holding (proverbial) hands with them and, who knows, perhaps nibbling - on some organic vegetables, of course - in some romantic garden. Whole Foods also declined to comment.