Analysts react to Amazon's $13.7B deal for Whole Foods

Whole Foods CEO calls deal with Amazon ‘whirlwind courtship

The Amazon deal was struck after the companies agreed that John Mackey would remain Whole Foods' chief executive.

The announcement of the takeover last week caused shares in other major US retailers including Target, Costco, and Walmart to plunge, as the 460 Whole Foods storefronts in the US, Canada, and United Kingdom become Amazon's.

Concerned Whole Foods shareholders who would like more information about their rights and potential remedies, including those who believe that the proposed transaction is unfair as to price or terms, may contact attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000, ambere@haelaw.com or kathleenh@haelaw.com.

First, not only will it put pressure on large retailers with exposure to the grocery market, it will put pressure on two of Amazon's biggest competitors, Wal-Mart and Costco.

"I just don't want Whole Foods to change how it is fundamentally", Stevens said. Amazon knows this, and its acquisition of Whole Foods is among other things an acknowledgment that the e-commerce giant needs a brick-and-mortar footprint to compete in the grocery space.

In response to a question about how Whole Foods' relationship with various stakeholders would change following the marriage to Amazon, Mackey said the company would evolve to match Amazon's relentless focus on customers.

Jeff Wilke, a top executive who leads Amazon's consumer business, also was at the town hall and echoed the idea that his company doesn't plan to undercut Whole Foods' quality standards. Amazon spokesman Drew Herdener says the company has no plans to use such sensors to automate the cashier jobs at Whole Foods.


"Kroger would have to pay in stock, and their stock has been hurting", giving them less leverage to get into a protracted bidding war with Amazon, Culpepper said.

Amazon's purchase of Whole Foods is widely viewed as a game-changer for groceries.

With Amazon is on its way to acquiring Whole Foods, one analyst thinks Grubhub could be its next target.

Amazon has been longing for a piece of the action and despite the launch of AmazonFresh over a decade ago, it is an industry that Jeff Bezos has found hard to get into.

What this deal means for food manufacturing is unclear yet.

Amazon is known for driving sales at the expense of profits, Stifel analyst Mark S. Astrachan noted, saying the company will likely maintain that approach as it looks to build market share in groceries. Wilke also noted that Mackey would continue to CEO of Whole Foods, which prompted Mackey to interject by continuing the romantic allusion. The latter in particular, which is the largest membership-only warehouse club in the USA, could be hurt considerably by the Amazon-Whole Foods deal.

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