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

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He said mutual friends set the companies up on a "blind date" in Seattle about six weeks ago, and executives immediately hit it off.

"Ultimately, we see the deal allowing Amazon to take further share of its customer's wallet and see a large opportunity to leverage many of its technologies to grow and optimize the Whole Foods business", said Daniel Salmon, an analyst for BMO Capital Markets.

While most corporate marriages end in relative failure, Amazon's $13.7 billion acquisition of Whole Foods could very well be the birth of a power player in the grocery space.

Without cashiers or checkout lines, Whole Foods might not need quite as many employees-and with fewer workers to pay, it would be even easier for Amazon/Whole Foods to lower prices for customers. Mackey told employees that his company and Amazon are "engaged", like a couple, but still waiting until their transaction gets regulatory approval.

TheStreet visited three grocery locations in New York's financial district, and of those three, Whole Foods noticeably thrived. Amazon's focus on frugality contrasts with Whole Foods, known to have higher costs than peer grocers. can ship books, furniture and clothing across the Pacific Ocean in what seems like a blink of an eye.

Whole Foods has more than 460 brick-and-mortar stores, which will boost Amazon's physical store presence in the battle for consumer food budgets.

"We're gonna evolve", Mackey said. The top 10 grocery retailers plus Amazon control less than half of the market, Blackledge says, and a patchwork of several hundred grocery chains, convenience stores, dollars stores as well as mom and pop stores make up the remainder. "I do use Amazon a lot but I don't want them to own everything".

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"One of the things they do better than us, they are more customer-centric than we are".

Whole Foods' 63-year-old CEO, who has raised eyebrows in the past for his shoot-from-the-hip style, compared his new relationship to a romance.

Turner noted that Whole Foods has large store footprints in most of GrubHub's key geographies, including California, Massachusetts, Illinois and NY.

Analysts say there's no reason to think Amazon's deal with Whole Foods will be limited to groceries.

Amazon has left cultures intact at other companies it purchased.

Whole Foods CEO John Mackey apparently knows what we're talking about.

Online grocery delivery can be notoriously hard, especially when it comes to the timely delivery of perishable goods, so here are five ways the purchase of Whole Foods will give Amazon an edge in this fight. "The company didn't say which banner, Whole Foods Market or 365 by Whole Foods, would lead that growth", Michelle Grant, head of retailing at Euromonitor, wrote to Retail Dive in an email.