Could Amazon’s Whole Foods takeover happen here?

Online shopping has been taking over the retail sector for some time, but the recent announcement that online shopping giant Amazon has bought US specialty grocery store Whole Foods still came as a shock. 

The US$13.7 Billion deal is the largest yet for Amazon, a whopping 70 times larger than its other 70 deals combined, and experts say that when Amazon arrives in Australia, it could happen here too. 

The announcement of the takeover last week caused shares in other major US retailers including Target, Costco, and Walmart to plunge, as the 460 Whole Foods storefronts in the US, Canada, and UK become Amazon’s.  

But how does it compare for Australian supermarkets?

Citi analyst Brian Raymond told News Corp that given the size of the acquisition relative to the market opportunity, an acquisition of Woolworths or Coles is unlikely, although a possibility for our smaller, independent supermarkets. 

“After adjusting for Australia’s population, the Whole Foods acquisition is the equivalent of a 34 store, $1.5 billion turnover business in Australia. The store base is half the size of Ritchies IGA and a quarter of the size of Foodland SA. An acquisition of this scale is feasible if the geographical store footprint proved attractive.”

Amazon is expected to be disruptive to all retailers when it enters Australia, and could lead to a faster push in food delivery and lower prices. 

How do you feel about a giant like Amazon coming to Australia?