Speculation grows that Amazon will face a rival bidder for Whole Foods
- Author: Zachary Reyes Jun 22, 2017,
Jun 22, 2017, 13:53
"It would be insane to change them", Wilke said.
"I think retailers are going to have to bring a lot of excitement to the store", said Stew Leonard Jr., CEO of Stew Leonard's, a grocery chain with five locations in CT and NY. As soon as the acquisition was announced, grocery retailer shares around the world were getting hammered on the stock market. The top 10 grocery retailers plus Amazon control less than half of the market, according to John Blackledge, an analyst at Cowen & Co.
A recent AJP poll revealed most of our readers (39%) do not support Amazon entering the pharmacy arena in Australia. Amazon and Whole Foods have the combined power to engage in low cost pricing - something mom and pop shops certainly can't do.
The deal comes after Whole Foods has been pressured as a key sales figure has declined. Still, no one seemed to put 2 and 2 together to forecast this deal. Amazon may change the inventory at Whole Foods as part of broad effort to lower prices. The Amazon deal was announced last week amid the potential for a proxy fight for board control.
Turner also explained to CNBC that Amazon has two important food initiatives - fresh food and restaurants - and is likely not to let either "wither on the vine". They really are. And one of my takeaways is that, by God, we're gonna become as customer-centric as Amazon.
"Without a doubt, this is utterly unbelievable", Mackey said according to a transcript that was disclosed to the public on Monday. Walmart has about 4,700 USA locations, with plans to offer curbside grocery pickup at 1,100 by the end of this year.
Mackey also said that he had a dream that Whole Foods would merge with Amazon about 18 months ago, presaging the industry-rattling deal. "We've been assured. Over time, there could be other formats that evolve that - that might - wouldn't be branded Whole Foods Market, potentially, wouldn't be our standards". Many said they had been told by managers not to speak to reporters. "And I think it would be insane to change them", said Jeff Wilke, chief executive of world-wide consumer at Amazon, at the Whole Foods town hall.
Second, and most importantly, while Whole Foods locations will give Amazon a bricks and mortar grocery platform, Whole Foods stores won't just be a grocery asset.
"Amazon is known to scale experiments very quickly".
Adrienne Anderson, at a Whole Foods in Savannah, Georgia, says she shops at Whole Foods nearly exclusively for meat and fresh produce "because of the quality and selection" and because fruits and vegetables are locally sourced. More than 60 percent of Whole Foods shoppers are subscribers to Amazon Prime, and more than a quarter of Whole Foods customers already buy groceries on Amazon, according to the consumer research firm Magid.