Home / FINANCE / Walmart won’t conflict Amazon for Whole Foods for a really elementary reason (WMT)

Walmart won’t conflict Amazon for Whole Foods for a really elementary reason (WMT)

Walmart employeesWalmart doesn’t need to plea Amazon’s $13.7 billion bid for Whole Foods.J.D. Pooley / Stringer/ Getty

Walmart isn’t formulation to challenge Amazon’s $13.7 billion bid for Whole Foods, Reuters reported Friday, citing a source informed with a matter.

The news comes amid flourishing conjecture that another association will try to outbid Amazon for a grocery chain, with Walmart regularly cited as a tip contender.

But that conjecture has been extravagantly off base, according to some analysts.

Here’s why: Walmart doesn’t need to buy Whole Foods to browbeat a grocery market. It’s already a tip grocery sequence in a US by a long-shot, with 21% marketplace share, compared to a next-closest competitor, Kroger, that claims a 10% share of a grocery marketplace in a US. 

Whole Foods, meanwhile, has usually 1.4% of grocery marketplace share, and Amazon has a 0.2% share. 

That’s not Walmart’s usually advantage. Walmart has a bigger earthy participation in a US than any other grocery chain, with 5,330 locations via a US within 10 miles of 90% of a race — and it’s still stability to grow and open new stores while other retailers are shrinking. 

US grocery marketUBS

Moody’s Investors Service expects that over a subsequent several years Walmart’s food business will “accelerate during a fast pace, with buy online/pick-up-in-store a latest weapon.” 

The bottom line? Amazon acquiring Whole Foods won’t give a e-commerce giant “any distinct edge” over Walmart, according to Charlie O’Shea, lead researcher for Moody’s.

That’s because it’s so doubtful that Walmart would opposite Amazon’s offer for Whole Foods.

“We have been asked by investors and media over a past few days, in roughly breathless tones, ‘What does Walmart do?’ and ‘Isn’t Walmart scared?'” O’Shea pronounced in a new investigate note. “Realistically speaking, a challenged $16 billion food tradesman is merely changing owners. And Walmart, already a world’s largest retailer, also is a world’s biggest grocer.”

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