iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Amazon Seeks to Destroy the Grocery Stores — Acquires $WFM For $13.7b

It was a nice business while it lasted, grocery storefags. Now Amazon is going to do to you what he did for the mall: destroy it.

Shares of WFM are set to leap by 30% on news that Amazon will acquire it for $13.7b. As a result, KR, TGT, WMT, SFM and other peers are plunging.

Cramer offers his 2 cents.

“This is such a gamechanger. … They will now dominate food within the next two years,” the “Mad Money” host said on CNBC’s “Squawk on the Street.”

“I’m taking down numbers for everybody who sells food. Everybody. Because you can’t compete [with] Amazon. They will not let you compete,” Cramer said, noting Amazon can now “change the whole paradigm.”

While I love this deal for the convenience of having Whole Foods delivered to my door by a fucking drone, I do worry about what the country will look like in a decade when all of its grocery stores ate shut down thanks to Amazon.

I would not be surprised if WMT, TGT or KR entered a competing bid.

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24 comments

  1. sarcrilege

    Control food, control the people:
    https://tinyurl.com/ya3l8puu

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  2. halfbloodpope

    Pope family buys 95% of meat from local butcher. Wegman’s is the real deal if you are privileged enough to live near one. Private owned and treat employees with respect.

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  3. montrose

    I’m not convinced this is a good move. How many people who really cook for themselves will buy food sight unseen? I don’t shop at WFM and would not want food delivered by drone if I did.

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  4. star5274

    Groceries (ex WFM) aren’t the only one’s hurt by AMZN today. AMZN also stuck a nail in the IBs. They did this buyout without any IB advisors. There were a few deals like this last year, but this one is the highest profile. A secularly bearish thing for GS and MS in particular.

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  5. tnapearson86

    Made $COST an easy pickup this morning.

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  6. roundwego

    Oil is gonna take the big dive.

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  7. mx2101

    I think Amazon is less likely to ruin the Whole Foods brand than other probable suitors. It is troubling to think about Amazon’s greater purpose in this deal. I’d surmise they will bootstrap this by merging the 365 store concept with another acquisition. Low-end + high-end= domination.

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  8. dmfracer

    Don’t worry, robotic farming (extra Roomba) will ween you off the grocery store’s tit in a few years. Grow it your self and have Jarvis do all the hard work.

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    • ferd

      Most don’t have the topsoil …but to you robot comment …I’ve been waiting forever for a weed-picking robot to be marketed …and for the subsequent cratering of the MONster seed market.

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  9. thehouse

    What are the odds Trump tries to block this deal? I’d say decent odds.

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  10. roundwego

    Looking very crashy this expiration

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  11. joyous__ending

    I don’t get it. Buying Best Buy would of made more sense.
    Whole Foods will not start selling Coke, Pepsi, Tostitos, and laundry detergent like other stores, maybe they plan to add a pharmacy. People will keep buying groceries where they are buying groceries. A Whole Foods location does not have room to stockpile a bunch of electronics, and other household gear. The stores are set up and designed for food.

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    • og

      People will go there to buy groceries not electronics.

      This will only make their Prime membership even stronger. It makes a lot of sense.

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      • joyous__ending

        So folks are going to drive 15-30 minutes extra to get to a Whole Foods to save 5% on prime membership. Why not continue to go to the local Kroger or other use a Kroger card and still save.
        What do I gain by having Prime and going to a WF?

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        • og

          I didn’t say I would only shop at Amazon / Whole Foods now, but it makes since for their Amazon Fresh push into groceries.

          A lof of people drive slightly out of their way to go to Costco. I do this every other weekend. We still go to Trader Joe’s and Albertsons too. Why can’t you do all of the above?

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  12. roundwego

    Rut is toast.

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  13. arnoldsimage

    Don’t worry Lord Fly. You won’t recognize the landscape after Sept. 23rd, 2017. https://youtu.be/SbS50oi3sII

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  14. arnoldsimage

    This was made back in 2015. https://youtu.be/8MDAR2jvmcE

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