Will SuperValu Survive and Should Amazon buy it?

An interesting question here is should Amazon have bought Supervalu instead of Whole Foods? After all, SuperValu is a discounter like Amazon, and it services a general mass market rather than a select upper-class clientele.

SuperValu’s stable of private label grocery brands might have been a better fit for Amazon than Whole Foods’ line up. Grub Street reported that Whole Foods’ suppliers are in revolt against Amazon. That provides an opening for Kroger (NYSE: KR) or Walmart (NYSE: WMT) to poach some of Whole Foods’ suppliers.

An advantage that SuperValu would have brought to Amazon is a lineup of products directed at average middle and working-class customers the bulk of the consumer base. Another is a lot experience in the supermarket and grocery sphere and established stores in large metropolitan markets.

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