Whole Foods has 13 Canadian locations, which are mostly in the Greater Toronto Area and B.C.’s Lower Mainland.
Barclays analyst Karen Short raised her Whole Foods price target to $48 from $38 and upgraded the stock to overweight from equal-weight, citing the possibility of counterbids.
Both Amazon and Whole Foods shareholders Monday are finding cause for celebration, with shares trading up, while warehouse chain Costco is taking a hit as Wall Street analysts foresee more Americans turning to delivery of groceries and essentials rather than making the trek out to warehouse clubs. Believe it or not, Whole Foods has already been testing price reductions on certain products due to competition from Walmart and Trader Joe’s.
Culpepper, who owns Kroger Co (KR.N) shares, said Kroger is the company that would be most likely improve Whole Foods’ efficiency, but that it would have difficulty matching Amazon’s cash offer.
The seismic shake-up of the increasingly technology-driven grocery industry Amazon triggered Friday will nearly certainly pulse through the cloud market. (WFM) led investors to aggressively sell off shares of bricks-and-mortar retailers, and not just ones selling groceries.
Investors seemed to give Short’s call some credence, as Whole Foods stock soared 29.1% to close Friday at $42.68, or slightly above Amazon’s bid price.
Mackey made the remarks during a town hall with Whole Foods employees after the $13.7 billion deal was announced late last week, according to a transcript of the talk filed Monday with the Securities and Exchange Commission.
In an email to customers titled “exciting news”, Whole Foods vowed to keep quality high.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy”, Bezos said, adding, “they’re doing an wonderful job and we want that to continue”.
Jana had called for Whole Foods to overhaul its operations and brought in retail and food experts to help foster a turnaround.
Whole Foods’ board, of course, has a fiduciary duty to its stockholders to consider any viable takeover offer.
Adding to the potential threat, Amazon is known for offering discounts and it’s likely to encourage more aggressive pricing at Whole Foods, Michelle Grant, head of retailing at market research firm Euromonitor International, said in a statement.
They add that the merger is probably even better news for Amazon Prime and Fresh customers, who usually get Amazon’s best deals.
“That’s my baby. I’m going to protect my kid, and they’ve got to knock Daddy out if they want to take it over”.