"Just because you're a grocery retailer that's been successful in Europe, it's not a given that you're going to be successful in the USA, as exhibited by Tesco", Mulpuru said.
The New York Times reported on Friday that Amazon is buying the Whole Foods grocery chain for $13.4 billion, and the blockbuster deal has become the front page story on the pop culture scene over the weekend.
Here's how leading retail analysts saw Amazon's move.
Marc Lore, the Jet.com founder who now runs Wal-Mart's e-commerce business after selling a startup to Amazon, told Reuters in an interview that Amazon's move does not change Wal-Mart's game plan.
Groceries are already a fiercely competitive business, with low-priced rivals like Aldi putting pressure on traditional supermarket chains and another discounter, Lidl, opening its first USA stores just this week.
The Seattle-headquartered ecommerce giant is considering replacing Whole Foods cashiers with technology, according to the report. In essence, it gives Amazon an established business that it can transform through its technology and supply chain expertise.
Amazon has attracted over 80 million Americans to Prime, according to the Consumer Intelligence Research Partners. The power of a physical presence on the high street to grow a brand's reputation and credibility is particularly important in grocery, where consumers want to be able to see the quality of the items they're buying first hand.
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Goldman Sachs Group Inc advised Amazon on the deal and provided bridge financing.
More than 460 Whole Foods stores in the U.S., Canada and the United Kingdom could be turned into distribution hubs - not just for delivering groceries but as pickup centers for online orders.
In an announcement that sent shock waves through the USA grocery business on Friday, Amazon announced plans to acquire Whole Foods for $13.7 billion. Shares of all major food-selling US retailers, including drugstore chains like Walgreens Boots Alliance Inc., were down more than 3 percent Friday. Also, it may be seeing the last mile as a real prohibition to profitability in multi-temperature goods. But one problem bogging down Whole Foods is that chains such as Walmart and Kroger were adroit at catching up, and their scale allowed them to put a dent in the Austin-based company's sales figures. However, Walmart may believe its can convince the federal government that there are enough grocery operations in the country that it will have a very modest share of market after a transaction. "Having said that, there is probably no doubt that a material new ingredient has been thrown into the global grocery sector M&A melting pot". It has $7 billion in cash and cash equivalents on its balance sheet and could easily borrow billions more.
Customers leave the Whole Foods Market in Boulder, Colorado May 10, 2017. The leadership of the business remains in place and it is likely to continue focusing on executing its turnaround strategy.
Amazon already offers grocery-delivery services in five markets, but analysts say expansion is tough because its current distribution centers are set up for dry goods, not perishables. 'Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades - they're doing an wonderful job and we want that to continue.
It's possible Trump's personal animosity toward Bezos-the Amazon CEO also owns the Washington Post-could cause the president to push the Justice Department to try to block the deal anyway, perhaps on some novel anti-competition grounds.
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