With activist Jana Partners pressuring Whole Foods Market to stay open to mergers, potential partnerships are beginning to come out of the woodwork.
Recent reports have suggested that both Kroger Co. and Albertsons are weighing possible investments into Whole Foods.
According to the Financial Times, Cerberus Capital Management—which controls Boise-based Albertsons—was in talks to make a bid for Whole Foods. Albertsons, which is looking to gain ground in the highly competitive supermarket industry, operates around 2,200 stores in 35 states.
What’s more, grocery giant Kroger could also join forces with Whole Foods, a move that could benefit both parties. Together, they could address the weaknesses of both chains, strengthening Whole Foods’ weak sales and bolstering Kroger in a cutthroat industry.
While neither of these deals have been confirmed or discussed by any parties involved, they make an interesting point about the current state of the grocery business. In order to survive, companies large and small must round out their offerings and offer reasonable prices in order to truly compete.
