Is Whole Foods Embarrassing Amazon’s (AMZN) Deal Team?

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Amazon.com, Inc. (AMZN) shares are down about 1% Wednesday, Nov. 15, though rivals are spooked by its newest spherical of value cuts.

The Wall Street jitters comply with reviews of slowing visitors to Whole Foods shops starting in October. While foot visitors elevated dramatically in September, the uptick in October was “much more modest,” in keeping with a Barclays replace on Amazon’s $13.7 billion acquisition of the grocery store in query.

Could Amazon, the invincible e-commerce big, be hitting roadblocks? Is Whole Foods amounting to be an even bigger endeavor than anticipated? Perhaps, business sources informed TheStreet Wednesday. But nobody dares to underestimate Amazon’s potential to leverage Whole Foods and ultimately nab market share away from the likes of Wal-Mart Stores, Inc (WMT) and Kroger Company (KR) .

“It is the most strategic project that they are yet to handle,” mentioned Jim Fosino of Fosina Marketing Group. Sit tight, “the game is only beginning,” he added.

In different phrases, for Amazon to succeed within the meals supply sector, it’ll take time. The dip in visitors now was anticipated, in keeping with Antony Karabus, a retail guide at HRC Advisory.

“There was so much traffic when the deal closed because people were curious,” he informed TheStreet. “So, it’s natural that it’s slowly declining.”

The first clients after the deal closed might have been turned off that solely a slim number of objects had been made cheaper, in keeping with Telsey badyst Joe Feldman. Whole Foods’ newest spherical of value cuts can be a small badortment of about 20 meals, together with turkeys, yogurt, potatoes and salad combine.

Declining development in visitors isn’t an indicator of any wrestle on Amazon’s half, Feldman and others mentioned. “It’s too soon to make that badessment.”

Industry observers should be “patient as this strategy rolls out,” Fosina mentioned. “We would argue that Amazon is doing exactly what it should be doing in affirming the Whole Foods-Amazon behavior and trying to convert Amazon customers who are not Whole Foods customers yet [to] give it a try.”

Along with the value reductions, Amazon introduced a further 20% low cost on Whole Foods merchandise for Amazon Prime members, a transfer that may create even better overlap between Prime customers and Whole Foods customers.

For the time being, every thing is in testing mode.

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