Amazon's next target should be Grubhub-and here's why, says top analyst

Whole Foods CEO calls deal with Amazon ‘whirlwind courtship

At a Whole Foods employee meeting on Friday, CEO and founder John Mackey proclaimed his excitement about Amazon's acquisition and gave some colorful background on how the deal went through.

Amazon.com's (AMZN) purchase of Whole Foods Market (WFM) will add to its deflationary impact on the economy as the e-commerce giant uses the retailer's stores as fulfillment centers for private label food sold online.

Shares for other retailers, like Target, have also been down since Amazon first announced the deal on Friday.

"This transaction is going to change the landscape of how you buy food", Mickey Chadha, Moody's vice president and senior credit officer who covers Whole Foods, told CNBC's "Squawk Box" on Monday morning.

"It's amusing. I was just ordering something on Amazon", said Nick Yezierski, a hotel manager who was eating breakfast outside the Whole Foods flagship store in Austin, Texas.

Mackey isn't saying the company's almost 90,000 employees are about to take a hit, but he's been very frank that there will be changes.

Lonzo seen as new face of Lakers
Moments after Lonzo Ball was selected, his father, LaVar , guaranteed the eldest Ball boy would lead the Lakers to the playoffs. He added: "There's just a renewed energy around here". "He has greatness written all over him", Johnson said.

About a month and a half ago, a consultant connected Amazon Chief Executive Jeff Bezos and Mr. Mackey, after the two companies had started talking about a potential deal, according to people familiar with the matter.

In response to a question about how Whole Foods' relationship with various stakeholders would change following the marriage to Amazon, Mackey said the company would evolve to match Amazon's relentless focus on customers.

"Some say the goal for Amazon is shed whole foods pricey image - and with that could mean job cuts - so far Amazon has denied that there will be any layoffs".

"Consumers want to know what they're getting and putting in their bodies", said Madeline Hurley, a senior analyst at market research firm IBISWorld. "Whole Foods is expensive enough". The investment bank led global M&A rankings last year and, based on year-to-date figures from FactSet, it's on pace to do so again this year-this time with a little help from Amazon and Whole Foods. Analysts say other grocery stores will probably lower their prices and improve their loyalty programs to keep up with the acquisition. More seriously, he said it was too early to discuss these kinds of details, but highlighted that one of Amazon's core values take Whole Foods is likely to embrace is frugality.

Amazon has been dipping it's toes into the fresh food market for quite some time now, with its grocery delivery and pickup service, AmazonFresh.

"Taking a step back in the sector at large, we continue to believe investors will have more defense versus Amazon's domination if they follow our Super Stock theory". They really are. And one of my takeaways is that, by God, we're gonna become as customer-centric as Amazon.

Related News:

  • Pennsylvania gerrymander gave GOP a big boost — AP analysis

    Pennsylvania gerrymander gave GOP a big boost — AP analysis

    The district is safely Democratic, but any smattering of GOP votes would have boosted the party's total share of the state vote. Roughly 20 percent of seats up for election had just one major party candidate - seven for Republicans and six for Democrats.

    Iran Calls Missile Attack on ISIS Targets in Syria a Wider Warning

    The attack was the punishment for the "criminal terrorists" and the revenge for the victims of a June 7 attack in Tehran . This month, an American F-15E shot down an Iranian-made drone after it attacked American fighters in southeastern Syria .

    England's Jason Roy given out obstructing the field in T20I

    David Miller then feathered Plunkett behind as South Africa slipped to 113 for four in the 14th over. Roy was clearly aghast but Morgan insisted it had been a "50-50 call". "You could see both sides".
  • Five GOP senators now oppose health bill

    The new bill is meant to walk a delicate line in its relatively modest tweaks to the measure that passed the House last month. His company was not one of the 10 that wrote to the Senate leaders, but he said Friday that he was also opposed to the bill.

    Democracy with no choices: Many candidates run unopposed

    The California congresswoman pushed back tensely against her party's rebels, insisting she has brought unity to the Democrats. Rick Nolan, D-Minn., said Democrats are not as good on delivering a winning message to voters as they should be.

    Ruet-e-Hilal Committee sights moon, Eid-ul-Fitr on Monday

    Eid-ul-Fitr, which marks the culmination of the fasting month of Ramadan , will be celebrated on Monday. Religious Eid is a single day that signals the end of Ramadan and the start of the next month, Shawwal.
  • Erdogan rejects Arab demands to remove Turkish troops from Qatar

    Over the next few days, several smaller African countries followed their allies' example. He urged the countries to sit together to stop terrorism and counter extremism.

    BET Awards 2017: 6 reasons to tune in

    Other strong competition Sunday include best female hip hop artist , where rivals Nicki Minaj and Remy Ma will go head-to-head. The Leslie Jones-hosted event will air on BET with a live stream available on BET.com and YouTube .

    India's Modi heads to Washington for 'no frills' Trump meet

    Modi will be the first foreign dignitary to be hosted by Trump for a dinner at the White House . Modi is the first Indian Prime Minister to visit Portugal on a bilateral trip, Baglay said .
  • New Zealand wins 5th straight vs Oracle in America's Cup

    The final is a repeat of the last time the trophy was contested in 2013, when U.S. came from 8-1 down to win 9-8. The Kiwis have had their share of mayhem this spring, including a capsize in the challenger semifinals.

    World's Ugliest Dog title goes to wrinkly mastiff Martha

    A huge, saggy Neapolitan Mastiff has been crowned the " World's Ugliest Dog " at the 26th annual contest in Petaluma, California. Moe, who had lost his hearing and sight, was the oldest contestant at the Sonoma-Marin Fair, where the competition is held.

    Toll from Pakistan tanker fire climbs to 148

    Residents from a nearby village rushed to gather the leaking fuel, overwhelming police who tried to cordon off the crash site. An overturned oil tanker burst into flames in Pakistan on Sunday, killing people who had rushed to the.


Most liked

Muslims in Asia pray for peace as Ramadan holy month ends
Canadian prime minister Justin Trudeau wished all Muslims a joyous Eid-ul-Fitr in a video on Facebook on Sunday. The central mosque in Muang district was one of the biggest draws for Muslims in the southern border region.

France's Macron faces test in parliamentary elections
Among the LREM political newcomers who went through to second round were his key ministers and a retired bullfighter. That Macron has achieved what looks to be a landslide takeover of the country's legislature is remarkable.

Iraqi forces free civilians in old Mosul
Some were injured, and some had been carried on army Humvees to rear positions where they were given bananas, biscuits, and water. The Iraqi military is now engaged in a months-long campaign to recapture western Mosul , IS's last stronghold in northern Iraq.

Blackhawks Select Defenseman Ian Mitchell In 2nd Round Of NHL Draft
Glass went sixth overall to the expansion Las Vegas Golden Knights and Jokiharju was taken 29th by the Chicago Blackhawks. The knock on Barratt is that his skating just isn't where it should be at this point.

McConnell stakes it all on health care bill
LC - the 1999 Supreme Court Ruling that first recognized disabled people's right to live in communities rather than institutions. Custodians also had to be sent to the hallway in order to clean up blood, according to Daily Beast reporter Andrew Desiderio .

Philadelphia 76ers: 5 reasons Markelle Fultz was the right pick
Ball then got the wish he and his father, LaVar, wanted all along by staying in Los Angeles, where he starred last season at UCLA. But a bevy of second-round selections Thursday pushed the two-round total to 14, which is a new conference record*.

New details on first US jet shoot down in 15 years
Australia has six fighter F/A-18 Super Hornet aircraft, based in the United Arab Emirates, that strike targets in Syria and Iraq . It was believed to be the first air-to-air kill of a manned aircraft by a USA military jet since the Kosovo campaign in 1999.

Jockeying for Position As Islamic State Withers
Long-range Kalibr cruise missiles are launched by a Russian Navy ship in the eastern Mediterranean. It is not the first time of the US losses in the region.

Tim Tebow Gets Promoted, Final Game Tonight
Tebow will play his final game with the low-A Columbia Fireflies on Sunday, and report to the team in Port St. As a result of their 33-41 record, the Mets are now in fourth place in the NL East.

Stabbing at USA airport is an act of terror
Amor Ftouhi , 49, has been charged with violence at an global airport, acting US Attorney Daniel Lemisch said in a statement . The suspect was arrested and was cooperating with investigators, FBI special agent David Gelios told a news conference.

Roger Federer claims record ninth Gerry Weber Open title in Halle
Federer served great, placing the first serves nicely, and he played against only 1 break point. Zverev has a very bright future in the game, and has a victory over Federer at this very venue.

Kumble-Kohli communication had stopped six months ago
With something going on between Kumble and squad, the limit was reached and finally made him resign from his position. After staying mum for several days on Kumble, Virat Kohli on Thursday broke his silence.

Senate Votes Up Anti-Russia Sanctions
Yet a short time after the 97 - 2 vote for the legislation, there was already word that the Trump administration was seeking to weaken the bill .

Lakers introduce Lonzo Ball, set high expectations
At only 19 years old, Bryant has a few years to develop his game, likely in the G-League with the South Bay Lakers. He added, "We want guys who are mentally tough, gym rats, guys who love the game", he said. "We're fine.

North Korea has tested a heavy duty engine for ballistic missiles
While that has been a non-starter for the United States , experts say this could be an opening gambit from Pyongyang. It was the second such test of the SM-3 Block IIA interceptor, which is being developed by Raytheon.