Jump to content

WFM - Whole Foods Market


Liberty

Recommended Posts

  • 4 weeks later...
  • Replies 161
  • Created
  • Last Reply

Top Posters In This Topic

Somebody was espousing a theory that Walmart or Kroger may counter bid to forestall Amazon from entering the space so dramatically and quickly.  The deal seemed like a pure financial one with activist pushing it behind the scene, who probably would be happy taking higher dollar bids regardless of where it's coming from.

Link to comment
Share on other sites

Somebody was espousing a theory that Walmart or Kroger may counter bid to forestall Amazon from entering the space so dramatically and quickly.  The deal seemed like a pure financial one with activist pushing it behind the scene, who probably would be happy taking higher dollar bids regardless of where it's coming from.

 

I don't really understand the rationale. They're all going to share the theoretical benefits of blocking Amazon, and I don't think any single player has enough share to justify absorbing the entire cost for that. Also, Amazon already has a delivery relationship Sprouts, which isn't quite Whole-Foods-sized but is close enough that it's hard to see what would stop Amazon from just buying Sprouts, doubling their storecount, and being in essentially the exact same position (except with Kroger now shouldering twice the debt-load).

 

But who knows!

Link to comment
Share on other sites

Whole Foods markets have always had an "above it all" feel to them which makes the experience of shopping at them better than competitors. This was a difficult-to-value advantage, and they obviously were having some trouble turning that into exploding earnings, but it's clearly the value Amazon saw in the company, so I don't know why any bull wouldn't think Amazon validates their position (super-alien genius Bezos agrees that Whole Foods is the best?).

 

Even though I was just suggesting Amazon -could- buy Sprouts if blocked here, there is a reason they didn't--even though it's less than a third of the price, cheaper per-store, etc.

Link to comment
Share on other sites

  • 3 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...