After Amazon.com (AMZN) - Get Report completes its $13.7 billion takeover of luxury grocer Whole Foods (WFM) , it could introduce a new brand with different standards, Whole Foods CEO John Mackey said according to a transcript of a town hall meeting for employees.
Amazon will keep the natural grocer's high standards for the Whole Foods brand, Mackey said. "They're not stupid enough to change that."
But in time the retail giant could add formats that aren't branded as Whole Foods and might not meet the same standards.
It could potentially be part of a future Amazon move to distance itself from the "Whole Paycheck" nickname Whole Foods currently boasts. Whole Foods recently opened a separate brand of stores under its Whole Foods 365 umbrella, offering private-label goods at lower prices.
Amazon and Whole Foods shares were slightly up in premarket trading.
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TheStreet's Lindsay Rittenhousewent shopping online at Ohio stores to see how Whole Foods stacked up against Walmart Stores Inc. (WMT) - Get Report and rival grocer Kroger (KR) - Get Report . While the results may not be shocking, they show just how much Amazon will have to cut for Whole Foods to be on equal footing with some of its competitors.
The cost of eight everyday food items at Whole Foods, TheStreet found, were nearly double those of the ones at Walmart, but Kroger undercut them both. Whole Foods' basket cost $38.29; Walmart's, $19.86; and Kroger's, $16.58.
With data as shocking as this, it's no wonder Whole Foods founder John Mackey is in love with Amazon.
Tesla's stock is out of control: Tesla Inc. (TSLA) - Get Report shares are expected to have a strong session amid reports Elon Musk's electric car baby may open a new production facility in China. Such a move would avoid tariffs in the world's second-largest economy, but risk the ire of U.S. President Donald Trump's "buy American, hire American" industrial policy, TheStreet's Martin Baccardax reports.
Tesla's market cap is now more than $60 billion and climbing, despite the company continuing to lose money. Ford's (F) - Get Report market clocks in at $44.7 billion, while General Motors (GM) - Get Report stands at $51.9 billion.
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