Amazon and Whole Foods: Is This a Grocery Apocalypse?

www.barrons.com

Alex Eule and Andrew Bary:

On paper, it’s just a midsize merger. If Amazon.com’s $13.7 billion deal for Whole Foods Market goes through unchanged, it will rank as the No. 4 U.S. retail deal, according to Thomson Reuters, behind an uninspiring list that includes Supervalu-Albertsons, Walgreens-Rite-Aid, and Kmart-Sears.
But Wall Street wasn’t thinking much about dollars and cents on Friday. Instead, Amazon’s surprising Whole Foods acquisition had investors doing a rapid assessment of retail’s future. Shares of companies seen as suddenly more vulnerable to the Amazon juggernaut got hammered.

The old Bezos two-step. He figures out a way to not only tank an entire industry on Wall Street, but also watches his own stock appreciate to the point where the deal has all but paid for itself. 

Also, let's not forget: Whole Foods did $15.7B in sales last year...

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