Why would Kroger even want WFM?

Rumors of Kroger buyout of WFM are, at least in the opinion of one analyst, unfounded. As he put it, "Why would Kroger want it?"

At this point, I doubt any other retailer in their right mind would want to buy WFM. Why buy a sinking ship? The rumor was probably started by the global office to pump up the stock price.

"Market speculation of Kroger acquiring rival Whole Foods Markets sent stock in both companies rising on Thursday, but an analyst told SN Friday such a deal seemed farfetched. "Why would Kroger want it?" Joe Feldman, an analyst with Telsey Advisory Group, said Friday when asked by SN about the speculation. "Kroger is already taking share in the space, as are others. And, it would cost a fair amount."

Read More: http://supermarketnews.com/retail-financial/analyst-kroger-whole-foods-rumor-doesnt-pass-smell-test#ixzz4MgiHbxYJ

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Kroger couldn't afford to buy us out and they have no reason to.

One of two things will happen. Either WFM gets back on track, or they very slowly wither away into bankruptcy.

I predict a Circuit City type scenario. They used to put emphasis on employee culture and empowerment, until they started cutting staffing and wages. Sound familiar?

The OP is spot on. NO profitable grocery company wants to buy this albatross. It's a sinking ship. If it were going to be taken over at a premium by another company, understand people that this would have ALREADY HAPPENED. No one wants it or needs it. Kroger, Publix, H.E.B., Wegman's and every other big "conventional" grocer has already added organic and natural products to their stores...in some cases, they've made 90% or more of their stores organic and natural based on the market the store sits in. No sane business wants to take on this hot mess. NO ONE WANTS IT OR NEEDS IT!

MY TWO CENTS, Kroger's would be looking for additional units to compete against publix and the german retailers (Aldi/ Trader Joes and Lydl) with volume buying they could lower prices for organics/ natural and still have the semi value pricing. If you have been in a Kroger's lately they have increased staffing and organics, while we have decreased both.. some even have Bars and coffee venues now,

Grocery is becoming more and more about location. People aren't going to drive past one grocery store to get to another anymore as long as the prices are about the same. Kroger could be trying to increase their number of stores by buying WFM so they can compete with walmart. That's my only guess.

The SOP is the beginning of prepping for the eventual sale. Think about it: wouldn't you want to sell a lemon before it became completely worthless? And wouldn't you be interested in buying a fixer-upper at the right price?

Thread regarding Whole Foods Market Inc. layoffs

Why would Kroger even want WFM?

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