Edition: India  
 
> >

Amazon may be primed for a ‘bidding war’ over Whole Foods - Barclays

Proactive Investors Monday, 19 June 2017 ()
Amazon.com, Inc (NASDAQ:AMZN) could be primed for a fight, according to analysts at Barclays, which on Monday upgraded Whole Foods citing the possibility that a ‘bidding war’ could break out. The bank’s analysts said Amazon’s US$13.7bn takeover offer may trigger a competitive response, as it lifted Whole Foods rating to ‘overweight’ from ‘equal-weight’, and bumped up the target price to US$48 from US$38. Whole Foods Market Inc shares were slightly higher ahead of Monday’s opening in New York. Wedbush says Amazon will step up groceries delivery Elsewhere, WedBush delved into the details of what the Whole Foods acquisition could mean for the Amazon business model. Amazon is expected to increase spending to drive growth of online ordering and delivery of groceries as a result of the deal. The analysts said they see the acquisition giving Amazon’s revenue a boost but only a slight lift to earnings per share due to further spending. “We expect incremental top-line growth to be largely absorbed by increased spending as Amazon augments its grocery delivery capabilities,” they said. A jobs cull? However, Amazon has plans to cut costs by culling jobs at Whole Foods, Bloomberg has reported. The e-commerce group is said to be considering replacing Whole Foods cashiers with technology. Meanwhile, Wedbush also expects Amazon will use the grocery stores of Whole Foods as distribution centres. Following the acquisition, the number of Amazon's refrigerated US locations grows by 440 Whole Foods Market stores from an estimated 20 fulfillment centres. “As a result, Amazon is positioned to quickly expand its Amazon Fresh offering, through which Amazon Prime subscribers pay an additional US$14.99 per month for grocery delivery,” Wedbush said. Disruptive impact for Wal-Mart, Target and CostCo Investors in grocery stocks were in panic mode on Friday as Amazon Inc (NASDAQ:AMZN), 600-pound gorilla of e-commerce, made a US$13.7bn tilt for Whole Foods (NASDAQ:WFM). Amazon’s disruptive move is set to be the largest ever deal in the grocery sector, though already experts are pointing to the possibility that it may force prices lower across its stores.
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 
Source: Business Video Online - < > Embed

News video: Amazon's to clash with Wal-Mart

Amazon's to clash with Wal-Mart 01:15

Amazon's purchase of Whole Foods Market aims at Wal-Mart's groceries business, which accounts for more than half of its revenue. Fred Katayama reports.

You Might Like


Recent related news

A Bidding War for Whole Foods? Vetting Amazon's Potential Adversaries

Only a few companies are capable of disrupting Amazon's offer to acquire Whole Foods. Here's a look at the most likely candidates.
Motley Fool - MarketsAlso reported by •SeekingAlpha

Analyst: Kroger should buy Whole Foods

Kroger Co. (NYSE: KR) should outbid Amazon.com to snap up Whole Foods Market (Nasdaq: WFM), an analyst argues in a recent report. Andrew Wolf of Chicago-based...
bizjournals - BusinessAlso reported by •SifyUSATODAY.comSeekingAlphaDeccan HeraldFab NewzZee News

Whole Foods shares keep rising in bidding war speculation

REUTERS - Whole Foods Market Inc shares added to their gains on Monday after Amazon.com Inc announced plans last week to buy the upscale grocer, with investors...
Reuters India - BusinessAlso reported by •Deccan HeraldFinanzNachrichten.deZee News

F&D Reports Along with AggData Release Amazon / Whole Foods Pro-Forma Analysis with Pros and Cons of the Deal

Comprehensive Compendium Highlights Nearby Food Retail and Cross-Sector Competition Great Neck, NY (PRWEB) June 23, 2017 In response to the shockwaves from...
PRWeb - Press ReleasesAlso reported by •Reuters India

Kroger executive refuses to believe everyone will get their groceries delivered

While the supermarket world is abuzz with the expansion of Amazon.com into the bricks-and-mortar world of grocery stores with its deal to buy Whole Foods, Kroger...
bizjournals - Business

Why Amazon wants to harness Austin's 'hippie power': Inside the proposed Whole Foods buyout

If Amazon.com's buyout of Whole Foods goes through, the world's most influential and modern retailer will come face-to-face with Austin weird. Dive into the...
bizjournals - Business


Other recent news in Business

Whirlpool says working with Britain after Hotpoint fridge freezer sparked LONDON blazeGERMANY lobbies for Indian railway projects
Exclusive: Report says EU firms face higher banking bills after BREXITSaina Nehwal crashes out of AUSTRALIAN OPEN SUPER SERIES
SE Asia Stocks-Muted as oil outlook bleak; S'pore, PHILIPPINES log 2nd losing weekIndian Passports to be in both ENGLISH AND HINDI; application fees reduced by 10%

Twitter

Environmentally friendly: newsR is hosted on servers powered solely by renewable energy
© 2017 newsR / One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter