Vivian D. Labbe
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Vivian D. Labbe in Mergers & Acquisitions,

The Scope Of Amazon's Whole Foods Deal: Carrier's Gain Is Parcel Deliverer's Loss

The clamor about Amazon.com, Inc.  scooping in on Whole Foods Market, Inc.  has died down, although there is continuing news flow on the ramification of the news for the retail sector, especially food retailing, and other related sectors such as transportation.

Morgan Stanley in a note released last Friday discussed the impact of the deal on carriers and parcel delivery companies.

Analysts led by Sumit Sharma said they believe the Whole Foods deal is much more than a grocery or warehouse play for Amazon. The analysts are of the view that it marks the rollout of the company's omnichannel strategy.

Morgan Stanley thinks omnichannel is negative for legacy parcel companies such as FedEx Corporation  and United Parcel Service, Inc.  but positive for truckload carriers such as XPO Logistics Inc .


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