Amazon is hungry

By MarketsCovestor

By now, Amazon.com’s (AMZN) purchase of Whole Foods Market (WFM) is old news.

I’d love to tell you that I expected this merger to happen… but that might be stretching the truth a little.

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Though back in October of last year, I did tell Newsmax TV that I expected to see Amazon make a major move in the grocery space. Here’s an excerpt:

Predatory Bezos

See Amazon’s Whole Foods Conquest Is a ‘Game Changer’ to read the full article.

Amazon founder Jeff Bezos famously said “Your margin is my opportunity.” I don’t expect groceries to be any different here.

Groceries aren’t an exceptionally high margin business already, but you can bet that Amazon will squeeze them a lot harder.

Walmart

It’s also worth noting that Amazon isn’t the only competitor looking to shake up the grocery business.

Walmart (WMT) itself was a major disruptor two decades ago, and the Behemoth of Bentonville isn’t sitting idly while Amazon takes over the world.

Walmart recently opened a state-of-the-art automated grocery pickup kiosk that allows shoppers to order their groceries in advance and skip the hassle of having to actually enter a Walmart store.

If I were Kroger’s (KR) management, I’d be terrified right now.

Photo Credit: Elliott P. via Flickr Creative Commons

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