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Whole Foods Doesn’t Have a ‘Tinder Relationship’ With Amazon, Its CEO Clarifies

According to analysts at Cowen & Co., Amazon, which is expected to be the ninth largest grocery retailer in the US this year thanks to Amazon Fresh, would become the third largest with the acquisition of Whole Foods. Mackey said after he and a team of Whole Foods WFM, +1.27% executives met with Amazon AMZN, +0.76% representatives in Seattle about six weeks ago, “It was truly love at first sight”. (ROST), Wal-Mart Stores Inc. 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.If Amazon wants to make a dent in the restaurant delivery business, its only choice at this point is to acquire Grubhub, Wedbush senior tech analyst Aaron Turner told CNBC on Tuesday.Whole Foods is part of the “crème de la crème of the supermarket industry” and is a “hand-in-glove fit” with the educated, relatively affluent demographic of Amazon customers who pay $99 a year for the site’s Prime membership that includes free shipping, video streaming and other services, Greif said. “We think deep-value companies or luxury goods companies are more un-Amazon-able and less vulnerable to share losses versus Amazon”, Chen said in a recent note. The filing contained a transcript of a town hall meeting for Whole Foods employees.Despite rumors that soon-to-be-owner Amazon might slash jobs by automating portions of Whole Foods stores, CEO John Mackey is stressing that the deal’s still basically a match made in heaven. There’s no better company in the entire world for Whole Foods Market than this company right here.Amazon’s offer of $13.7 billion, representing a multiple of 10 times earnings before interest, tax, depreciation and amortization, could possibly be raised to 11 or 12 times, according to Kevin Dreyer, co-chief investment officer at Gabelli Funds, which holds Whole Foods shares. “Everybody’s been kind of joking that it’s going to be robots and drones”, Clark said of potential changes from Amazon, which uses robots in its warehouses and is testing drones for delivery. The latter in particular, which is the largest membership-only warehouse club in the US, could be hurt considerably by the Amazon-Whole Foods deal.Analysts predict big changes for grocers following Amazon’s surprise purchase of Whole Foods, NBC News reported.Although it has reportedly come with it’s learning curves, Amazon Founder Jeff Bezos has shown a willingness to try new things.After all, it was Whole Foods’ CEO who referred to Jana in a Texas Monthly interview earlier this month as “greedy bastards”.And there’s no shortage of speculation about the ways the company could innovate and leverage Whole Foods locations to further its interests.