In a letter to customers, Whole Foods (NASDAQ:WFM) reached out to let shoppers know that even after the Amazon (NASDAQ:AMZN) buyout it will still be providing the same high quality organic products Whole Foods is known for. However, not all shoppers are convinced.
Will Whole Foods join Amazon in the race to the bottom? Ultimately prices will come down at Whole Foods, but does that mean quality will also be sacrificed? That remains to be seen, but from an investment perspective, there are still implications for current shareholders and competitors.
In terms of still having an advantage, Whole Foods does enjoy higher margins and returns on capital because of its superior product mix. Which includes wine/beer bars and restaurant-like meals.
