Whole Foods/Wild Oats merger

[polkaface]

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I assume Whole Foods and Wild Oats are the 2 biggest players in the "natural foods" market? Who are their competitors? Is TJ's considered one? Why is Walmart or another huge national grocer, not in the natural foods space, an issue here?

-Al

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Oh ok, I see:

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The agency is concerned that the combined company will control too much of the U.S. natural-foods market, Whole Foods said. The FTC should instead consider the merger's effect on the overall supermarket industry as Safeway Inc., Wal-Mart Stores Inc. and other grocers expand their natural and organic departments, Whole Foods said.

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From this latest Bloomberg update.

Is that a fair stance from Whole Foods?

-Al

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I think so. If there is an opportunity for excess returns from selling organic foods, the other grocers are going to jump more into the fray and offer more product.