Saw the news that Supervalu and CVS are buying grocery chain Albertson's today. Some might be tempted to think this is simply a consolidation play -- add a large, low-growth revenue base over fixed distribution / overhead structure and squeeze a few bucks out of the synergies (close some stores, etc.). But maybe their new owners see something more? Here's a picture that's caught our eye...
As a Whole Foods loyalist (hey, I live in Southern California), I can tell you that while the product always need to be good, their stock price reflects something deeper--a movement, if you will, that has captured a growing (and prosperous) subsection of the economy. And if you look carefully at their product offerings and notice the dry goods and clothing creeping-in, you realize that, for Whole Foods, it's not just business as usual. The supermarkets aren't the only ones who have something to fear.
Posted by: Russ Pillar | January 24, 2006 at 05:38 AM