Welcome to the new Whole Foods.
Amazon's (AMZN) - Get Amazon.com, Inc. Report acquisition of Whole Foods closed Monday, and TheStreet's founder and Action Alerts PLUS portfolio manager Jim Cramer said Whole Foods locations will be distribution centers to move product to consumers faster.
Meanwhile, Barclays analyst Karen Short wrote in a note on Friday that Amazon could apply its bookstore prototypes strategy to redoing the traditional grocery story, evident in Whole Foods stores. That means, she wrote, that it will be "clearly showing titles," but "not a bountiful selection" with the "goal of a higher hit selection."
But, Short also pointed out how Whole Foods' stores might no longer try to sell all things, to all people. After all, Amazon wants to run extra profitable Whole Foods stores so that it earns a high return on investment.
"A comprehensive analysis of productivity in each department will likely show clear evidence that apparel should be abolished entirely in every store. Vitamins and minerals, while high margin, will also likely be eliminated or drastically paired down from all stores given WFM's drastically higher price positioning in these categories. In the key SKUs [items] that remain, we expect to see drastic price reductions."
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