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essentially relegating everything that currently exists in the business obsolete,” said David Tawil, president of hedge fund Maglan Capital. Amazon’s deal to buy Whole Foods comes as Wal-Mart is engaged in a price war with rivals such as Aldi and Kroger in the grocery segment, which makes up about 56 per cent of Wal-Mart’s revenue. Amazon’s move only adds to the pressure on Wal-Mart, as over time, the convenience and grocery delivery offered by the e-commerce giant would likely cut into Wal-Mart’s sales, said Ken Perkins, president of research firm Retail Metrics. However, analysts said other retailers such as Kroger would be hit harder by Amazon’s latest bet. “Wal-Mart has prepared for this day,” said Michelle Grant, head of retailing at Euromonitor International. Whole Foods customers had been happy to shop at other retailers including Wal-Mart, for similar products at lower prices, but it was unlikely that a Wal-Mart customer would shop at Whole Foods, even if the upmarket grocer were to cut prices, Grant said. Bentonville, Arkansas-based Wal-Mart, the world’s largest brick-and-mortar retailer, has been beefing up its online presence to better compete with online rival Amazon. Wal-Mart bought internet retailer Jet.com for about $3-billion last year in the largest-ever deal for an e-commerce startup. In the first three months of 2017, Wal-Mart snapped up online women’s fashion retailer ModCloth, outdoor clothing and gear retailer Moosejaw and footwear retailer Shoebuy.
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