Friday, it was announced that Amazon would be buying Whole Foods:
Wall Street is betting Amazon (AMZN, Tech30) could be as disruptive to the $800 billion grocery industry as it has already proved to be for brick-and-mortar retail businesses.And of course, Twitter users had a lot to say about the deal:
Amazon already had a relatively small grocery business of its own, Amazon Fresh, but its acquisition of Whole Foods is much more ominous sign for competitors.
Traditional grocers are already struggling with fierce competition and falling prices. Amazon's war chest and online strength, coupled with Whole Foods' brand power, could force grocers to cut costs and spend heavily on e-commerce.
"For other grocers, the deal is potentially terrifying," Neil Saunders, managing director of GlobalData Retail, said in a report on Friday. "Amazon has moved squarely onto the turf of traditional supermarkets and poses a much more significant threat."
Stock prices for other grocers fell Friday, totaling about $22 billion in market value. Obviously this isn't trivial, but after finishing Nassim Taleb's Fooled by Randomness recently, in which he specifically discusses randomness in the market, I'd be more interested in seeing what happens long-term (I'm expecting some regression to the mean soon).Jeff Bezos: "Alexa, buy me something from Whole Foods."— JESAL (@JesalTV) June 16, 2017
Alexa: "Sure, Jeff. Buying Whole Foods now."
Jeff Bezos: "WHA- ahh go ahead." pic.twitter.com/GuJ2jlAiuU
And there's the big question - what will happen to Whole Foods? You can already buy groceries through Amazon, including more "mainstream" products you don't see in Whole Foods. Will Whole Foods become just another grocery store?
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