Whole Food shares keep rising, leading to bidding war speculation

In food retail Amazon has found one moat that it can’t simply leap over

Amazon has made a huge splash and acquired organic supermarket chain Whole Foods for $13.7 billion.

Bug fixes, plus nighty nighty to Apple Watch and iOS 9 support.

Are we just going to end up with two retail companies?

"By integrating Whole Foods into Fresh, Amazon is creating more efficiency in its grocery supply chain operation", said Cooper Smith, director of Amazon research at L2 Inc., a business intelligence firm. That fits with Whole Foods private-label push to compete on price, and gives Amazon a bigger foundation on which to develop its own food brands. Meanwhile, Amazon's issues with counterfeit goods make luxury a tough market to crack, Digiday reported. "I'm shopping here anyways", shopper Alina Gura said at a Whole Foods in West Hartford, Connecticut.

Whole Foods CEO John Mackey has previously called the activist fund 'greedy bastards.' Jana was, according to CNBC, not part of the discussions with Amazon.com, Inc. and the firm didn't know about the deal before it was announced to the public.

Whole Foods, with Amazon backing, will expand brick and mortar much more quickly because of the financial power of Amazon.

Don't expect Walmart, Costco and others to sit idly by while Amazon steals their business, JPMorgan analyst Paul Coster said Monday. Whole Foods gives Amazon a tremendous amount of credibility around the quality of the food and the reputation they have with their customer base.

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What: With its purchase of Whole Foods for USA $13.7 billion, Amazon strengthens its position in the race for the retail industry, and opens the door to direct contact with the Hispanic community. That means that in the short term at least, the company would be worth more to a more traditional retailer than it would be to Amazon. Prime membership for groceries cements a relationship with a grocery store, and it encourages members who have not shopped there to shop in Whole Foods.

There's also the "grocerant" trend - a blending of grocery stores and restaurants.

It's also not clear if Amazon will sell the technology to other companies - for the sake of being able to profit off this vertical when the competition's already sealed off from its customers anyways.

Though the price tag of Bonobos was significantly less than that of Amazon's purchase of Whole Foods, it's a move that analysts point to as Wal-Mart's strategy to compete with the Internet giant.

Drew Herdener, an Amazon spokesman, said in a statement the company has "no plans to use no-checkout technology to automate the jobs of cashiers at Whole Foods and no job reductions are planned".

"Kroger would have to pay in stock, and their stock has been hurting", giving them less leverage to get into a protracted bidding war with Amazon, Culpepper said.

"This might be an opportunity for consumers who have felt that Whole Foods is inaccessible", said Lauren Beitelspacher, a marketing professor at Babson College in MA.

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