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: Wochit Headline News - < > Embed

News video: Amazon's Buy Of Whole Foods Has Secret Weapon At The Ready

Amazon's Buy Of Whole Foods Has Secret Weapon At The Ready 00:50

Amazon didn’t decide to drop $13.7 billion to acquire Whole Foods on Market Friday to improve the struggling fancy food seller’s performance within the traditional model. Instead, it's going to use it's not-so-secret weapon: its army of loyal subscribers to literally upset its rivals’ apple...

You Might Like


Recent related news

Amazon Great Indian Sale Day 4: Discounts on Samsung Galaxy On5 Pro, LG Q6, Apple iPhone 6, and more

Today is the last day of the Amazon Great Indian Sale, which kicked off on August 9. The four-day sale offered discounts across multiple categories. There are...
BGR India - Technology

Independence Day 2017: Amazon India to get a new look, to go live on August 15

As India celebrates its 71st Independence Day tomorrow, Amazon India will join in with a special layout of its website. The new Independence Day-themed gateway...
BGR India - Technology

Amazon loses $6 billion in market value following Donald Trump’s critical tweet

Donald Trump is quite a mess on Twitter. We’re not saying this, the world is. Ever since he became President of the United States — on the same day...
BGR India - Technology


Other recent news in Business

Muruguza, DIMITROV eye maiden Cincinnati Masters' titlePost note ban, separatists, Reds feel &#039;fund-starved&#039;: ARUN JAITLEY
India beat SRI LANKA BY nine wickets in first ODI

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